Stocks Slide on Tariff Threats
U.S. equity futures slid early Monday after President Donald Trump threatened high tariffs on more countries over the weekend, but were off the worst levels as investors bet those duties will eventually be negotiated down. Investors were also optimistic about second-quarter earnings season, which ramps up this week.
Futures for the Dow Jones Industrials dropped 129 points, or 0.3%, to 44,470.
Futures for the S&P 500 index subtracted 16.75 points, or 0.3%, to 6,283.25.
Futures for the NASDAQ dumped 64 points, or 0.3%, to 22,895.
Investors continue to monitor ongoing updates on the tariff front, after Trump announced Saturday that the U.S. will impose 30% tariffs on the European Union and Mexico starting Aug. 1. Leaders of the EU and Mexico indicated they intend to keep talking with the Trump administration this month in an attempt to agree on a lower rate.
Trump’s announcement comes ahead of inflation readings this week, which will give investors a better sense of how the Trump tariffs already in effect are being felt throughout the economy.
Eyes are on a slew of earnings reports set to roll out this week. Major banks, including JPMorgan Chase, will deliver quarterly reports starting Tuesday.
In Japan, the Nikkei 225 index gave back 0.3% Monday, while in Hong Kong, the Hang Seng increased 0.3%
Oil prices jumped 99 cents to $69.44 U.S. a barrel.
Gold prices waned 90 cents to $3,363.10 U.S. an ounce.
