U.S. stock futures saw a modest rise early on Monday as investors weighed the uncertainty surrounding President Donald Trump’s plans to impose tariffs on major trading partners this week. With important economic data on the horizon, including a crucial jobs report and key retail earnings, market participants are bracing for potential market-moving news.
S&P 500 futures climbed 0.2%, while Nasdaq 100 futures gained 0.3%. Dow Jones Industrial Average futures were largely flat. This slight uptick follows a volatile week and a losing month for the major U.S. indexes in February.
Key Events and Tariff Deadlines Loom
March trading kicked off with more questions than answers. As tariff deadlines approach, the Federal Reserve’s next meeting is also on the horizon, adding to market uncertainty. The U.S. economy will soon be under scrutiny to determine whether it can overcome investors’ concerns about slowing growth.
Tariffs on Canada and Mexico are scheduled to take effect on Tuesday, March 4. While the plan includes 25% duties, U.S. Commerce Secretary Howard Lutnick described the situation as “fluid,” indicating that the tariffs could be lower than initially planned. Additionally, new tariffs on Chinese imports are set to come into effect on the same day.
Economic Reports in Focus
This week, investors are particularly focused on the upcoming jobs report and retail earnings, which could either amplify or alleviate concerns about an economic slowdown and consumer resilience.
The February nonfarm payrolls report, due on Friday, is expected to show modest job growth, with the unemployment rate remaining steady at 4%. This report will be closely watched, especially given recent signs of weakening in the labor market.
Retail earnings reports are also under the spotlight. Notably, results from Target (TGT) on Tuesday and Costco (COST) later in the week will provide insight into consumer spending habits, following recent data that revealed a surprising decline in consumer spending in January—the biggest drop in four years.
Cryptocurrency Surge Following Trump Announcement
Meanwhile, cryptocurrencies received a boost after President Trump announced that five digital assets would be included in a new U.S. strategic cryptocurrency reserve. These assets include Bitcoin (BTC-USD), Ether (ETH-USD), XRP (XRP-USD), Solana (SOL-USD), and Cardano (ADA-USD). Following Trump’s social media post, the prices of these digital tokens saw significant jumps.
Bitcoin, which had dropped 17% to below $79,000 per token in February, surged to over $94,000 before settling around $91,700. This news follows an executive order signed by Trump in January, which aimed to establish a reserve for digital assets, with Bitcoin and Ethereum at the center.
Market Outlook
As investors digest these developments, the stock market will likely experience further volatility in the coming days. With tariff decisions looming and key economic reports on the horizon, the market’s direction will be shaped by how these factors unfold, particularly regarding consumer behavior, labor market trends, and trade policy.
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