U.S. stock futures declined on Monday following President Donald Trump’s announcement of an increase in global tariffs to 15% from 10%, a decision made after the Supreme Court invalidated the president’s “reciprocal” tariffs. The recent tariffs have intensified market uncertainty regarding the future of inflation and global growth. Futures for the Dow Jones Industrial Average fell by 126 points, representing a decline of 0.3%. S&P 500 futures and Nasdaq-100 futures experienced declines of 0.3% and 0.4%, respectively. Oil prices fell, as Brent crude futures decreased by 0.5% to $71.37 a barrel. U.S. crude futures stood at $66.11 a barrel, reflecting a decrease of 0.6%. Bitcoin experienced a decline, dropping at one point to under $65,000, before bouncing back to $66,317. The cryptocurrency remains down 1.6% as the sharp sell-off persists. Those actions follow Trump’s statement on Saturday, in which he declared his intention to raise global tariffs to 15%, an increase from the 10% he had announced the previous day. Trump stated that the duties would take effect immediately; however, it remained uncertain if any official documents had been signed concerning the timing.
“I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level,” Trump wrote. Trump also cautioned that further levies would be forthcoming in the coming months. Market has concluded a turbulent trading session. On Friday, stocks experienced an initial rally following the Supreme Court’s decision to strike down a significant portion of Trump’s trade agenda, before retracting and ultimately regaining their footing.
The Dow Jones Industrial Average concluded the session with an increase of over 230 points, or 0.5%, bouncing back from a 200-point decline earlier in the day. The S&P 500 increased by 0.7%, and the Nasdaq Composite experienced a rise of 0.9%. Investors anticipated that the Supreme Court ruling would alleviate tensions between the U.S. and its trading partners, potentially resulting in refunds for companies impacted by the tariffs. However, they are still seeking further clarity from the White House. “It would seem that Wall Street — and Main Street — are going to be dealing with the issue of trade and tariffs for some time to come,” Tim Holland wrote on Friday.
Meanwhile, Iran continues to attract the attention of investors. This past week, Trump urged Iran to negotiate a deal regarding its nuclear program, cautioning that otherwise “bad things” might happen. Trump is set to present his State of the Union address to Congress on Tuesday. Nvidia earnings will be a significant point of interest this week. The chipmaking giant is poised to unveil its results on Wednesday. It stands as one of merely two Magnificent Seven stocks that have managed to secure a gain this year. The company must provide assurances to investors that its strategy for investing in artificial intelligence is still firmly in place. On the economic front, data regarding durable goods orders and factory orders is scheduled for release on Monday morning.