People walk past the New York Stock Exchange in New York City, July 11, 2025. Picture taken through glass.
REUTERS
(Reuters) — U.S. stock index futures slipped on Monday, as President Donald Trump’s fresh tariff threats targeting the European Union and Mexico dampened investor sentiment at the start of a week packed with economic data and second-quarter earnings.
Over the weekend, Trump announced plans to slap a 30% tariff on most imports from the EU and Mexico starting August 1, adding similar warnings to other countries, giving them less than three weeks to strike framework deals.
The EU said it would extend its suspension of countermeasures to U.S. tariffs until early August and continue to press for a negotiated settlement.
The latest round of threats follows Trump’s tariff assault on several countries last week, including allies Canada, Japan, and South Korea, and the announcement of a new 50% tariff on copper.
At 6:53 a.m. ET, Dow E-minis were down 131 points, or 0.29%, S&P 500 E-minis were down 20.25 points, or 0.32%, and Nasdaq 100 E-minis were down 77.5 points, or 0.34%.
The measured losses indicate that investors have become acclimatized to repeated tariff threats, given Trump’s history of frequently backing away from pledged duties.
“The moves have not been larger since investors see these threats as a Washington negotiating tactic to push the other side over the line into a deal,” ING analysts said in a note.
However, Wall Street’s march to record highs will be put to the test this week with the start of the second-quarter earnings season by major banks such as JPMorgan Chase, Wells Fargo and Citigroup on Tuesday.
Meanwhile, Tuesday’s inflation report would be highly monitored, and could potentially show early upward pressure from Trump’s erratic tariffs.
Additionally, producer and import price reports are due on Wednesday.
On Friday, the S&P 500 receded from an all-time high it hit the day before, and closed lower. It capped last week with modest losses.
RBC Capital Markets raised its S&P 500 index year-end target to 6,250 from 5,730, the brokerage’s second hike this year, citing stronger investor sentiment and growing focus on 2026 economic prospects.
Also on the docket are at least seven Federal Reserve officials due to speak through the week.
Amid the economic data deluge, traders have almost entirely ruled out a July rate cut from the Fed, though the odds for a September move still hover around 60%.
Investors are also keeping a close watch on tensions between the White House and the U.S. central bank, after economic adviser Kevin Hassett said over the weekend that Trump might have cause to fire Fed Chair Jerome Powell, citing cost overruns from the central bank’s headquarters renovation.
Among stocks, Boeing rose 1.3% in premarket trading after a preliminary report from the Air India crash probe suggested no immediate action against the planemaker.
Crypto stocks ticked up after bitcoin topped $120,000 for the first time. Coinbase global rose 1.4%, while Bitfarms gained 4.6%. Strategy advanced 2.8%, while Riot platforms was up 3.4%.
