Stock futures saw slight gains early Monday as investors continued to weigh the potential impact of President Donald Trump’s plans to impose tariffs on major U.S. trading partners. The uncertainty surrounding the tariffs has kept markets on edge.
The Dow Jones Industrial Average futures rose by 47 points. Meanwhile, S&P 500 futures climbed by 0.2%, and Nasdaq 100 futures increased by 0.25%.
Tariff Details Remain Uncertain
Commerce Secretary Howard Lutnick discussed the tariffs on Sunday, stating that the exact duties to be imposed on Mexico and Canada starting Tuesday are still “fluid.” He indicated that the tariff rate could be lower than the proposed 25%. However, Lutnick confirmed that the additional 10% tariff on imports from China is “set” and will proceed as planned.
Treasury Secretary Scott Bessent also provided insight, mentioning that Mexico has suggested matching the U.S. tariffs on China as a way to avoid the tariffs set to affect them on Tuesday.
Warren Buffett Weighs In on Tariffs
Legendary investor Warren Buffett made rare comments on the potential impact of tariffs over the weekend. He warned that such duties could lead to inflation and negatively affect consumers.
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” said Buffett, the chairman and CEO of Berkshire Hathaway. “Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!”
Market Volatility Amid Tariff Concerns
The ongoing uncertainty surrounding Trump’s trade policies has caused recent market volatility. All three major indices suffered losses in February. The S&P 500 fell by 1.4%, the Dow Jones Industrial Average dropped 1.6%, and the Nasdaq Composite, which is more sensitive to tech stocks, experienced a 4% decline, its worst monthly performance since April 2024.
Chris Rupkey, Chief Economist at FWDBONDS, commented on the situation, saying, “Whether the stock market can survive this change remains to be seen. One way or another, tariffs will be a shock for the economy.”
Cryptocurrencies Surge
In other news, cryptocurrencies saw a significant rally on Sunday after President Trump announced plans to establish a strategic crypto reserve for the U.S. This reserve will include digital currencies like bitcoin and ether. Bitcoin saw a notable jump of 10%, reaching nearly $94,000, after dropping to a three-month low of under $80,000 on Friday.
Key Jobs Report Ahead
This week promises more action, with the highly anticipated February jobs report set for release on Friday. The report is expected to show a decline in the number of jobs created, adding another layer of uncertainty to the market.
Stay tuned for further updates as the situation develops.
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