S&P 500 futures slide as markets brace for Trump’s new tariffs
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SPX futures were lower on Monday as investors awaited President Trump’s announcement of new reciprocal tariffs on multiple countries. Uncertainty surrounding trade policy has triggered a risk-off sentiment, weighing on equities and broad market indices.
Trump’s tariff agenda fuels investor caution
Trump signaled on Friday that the U.S. would impose tariffs on “everyone” to ensure that the country is treated evenly in global trade. While no specific nations were mentioned, analysts suggest that european auto exports could be a major target. The European Union (EU) currently imposes a 10% tariff on U.S. auto imports, while the U.S. applies only a 2.5% tariff on european vehicles. Trump has criticized this imbalance, suggesting that new tariffs could be introduced soon.
Market reaction: equities retreat
Major indices ended Friday’s session in the red as trade fears escalated: S&P 500: -1%; Dow Jones industrial average: -1%; Nasdaq composite: -1.4%. The technology sector was hit hardest, with Amazon shares falling 4% despite record Q4 revenue of $187.8 billion.
Economic data: mixed nonfarm payrolls report
The U.S. nonfarm payrolls (NFP) report showed 143,000 jobs added in January, below the 169,000 consensus estimate. However, the unemployment rate dropped to 4.0% from 4.1%, indicating continued labor market strength.
Outlook: volatile week ahead
Investors are bracing for a volatile week as markets react to potential trade policy shifts. Upcoming events to watch include: Trump’s tariff announcement: expected today or tomorrow, could reshape global trade flows; U.S. inflation data (Wednesday): critical for assessing the Federal Reserve’s next policy move; Jerome Powell’s testimony (Wednesday): FED chair’s comments on economic outlook will be closely scrutinized. Markets remain on edge as uncertainty around trade policy and economic data continue to drive sentiment.
Trump’s tariff agenda fuels investor caution
Trump signaled on Friday that the U.S. would impose tariffs on “everyone” to ensure that the country is treated evenly in global trade. While no specific nations were mentioned, analysts suggest that european auto exports could be a major target. The European Union (EU) currently imposes a 10% tariff on U.S. auto imports, while the U.S. applies only a 2.5% tariff on european vehicles. Trump has criticized this imbalance, suggesting that new tariffs could be introduced soon.
Market reaction: equities retreat
Major indices ended Friday’s session in the red as trade fears escalated: S&P 500: -1%; Dow Jones industrial average: -1%; Nasdaq composite: -1.4%. The technology sector was hit hardest, with Amazon shares falling 4% despite record Q4 revenue of $187.8 billion.
Economic data: mixed nonfarm payrolls report
The U.S. nonfarm payrolls (NFP) report showed 143,000 jobs added in January, below the 169,000 consensus estimate. However, the unemployment rate dropped to 4.0% from 4.1%, indicating continued labor market strength.
Outlook: volatile week ahead
Investors are bracing for a volatile week as markets react to potential trade policy shifts. Upcoming events to watch include: Trump’s tariff announcement: expected today or tomorrow, could reshape global trade flows; U.S. inflation data (Wednesday): critical for assessing the Federal Reserve’s next policy move; Jerome Powell’s testimony (Wednesday): FED chair’s comments on economic outlook will be closely scrutinized. Markets remain on edge as uncertainty around trade policy and economic data continue to drive sentiment.