U.S. Stock Futures Drop as Wall Street Faces Trade Tensions, Earnings Test
U.S. stock futures fell Sunday evening as Wall Street gears up for a potentially volatile week, with fresh trade tensions and a flood of second-quarter earnings expected to test market resilience.
Futures tied to the S&P 500 dipped 0.4%, while contracts on the Nasdaq 100 and Dow Jones Industrial Average also slipped by about 0.4% each. The declines follow President Donald Trump’s announcement on Saturday that the U.S. will impose 30% tariffs on imports from the European Union and Mexico starting August 1. The new tariffs raise the stakes for global trade and add pressure to already elevated inflation levels.
Both the EU and Mexico have indicated they are open to further negotiations in hopes of softening the tariff blow. Sunday night’s market moves also come after a down week for stocks, breaking a three-week winning streak for the major indexes—even as they remain close to record highs.
Investors now turn their focus to upcoming inflation data, with June’s Consumer Price Index (CPI) due this week. The figures will offer fresh insight into how previous tariffs have filtered through to consumer prices and could influence the Federal Reserve’s next move. A decision on interest rates is expected in just over two weeks. Meanwhile, friction between the Fed and the White House continues to simmer. National Economic Council Director Kevin Hassett told ABC News on Sunday that President Trump could consider removing Fed Chair Jerome Powell “if there’s cause.”
Adding to the high-stakes week, earnings season kicks into gear with major U.S. banks set to report results. Investor attention is also turning to IPO activity and mergers, with Wells Fargo (WFC) preparing to release earnings after being freed from a decade of strict regulatory oversight.
The tech sector will take center stage as Netflix (NFLX) leads off the big names, followed by updates from ASML (ASML) and Taiwan Semiconductor (TSMC), key players in the AI-driven chip sector. Other major firms reporting this week include PepsiCo (PEP), United Airlines (UAL), and American Express (AXP), offering a broader snapshot of consumer and business sentiment.
