U.S. stock futures moved slightly higher on Monday night after a sharp drop in the major stock indices earlier in the day. Investors were also closely monitoring President Donald Trump’s impending tariffs on Mexico and Canada, which he confirmed would take effect on Tuesday.
Futures tied to the Dow Jones Industrial Average gained 72 points, or nearly 0.2%. Similarly, S&P 500 futures and Nasdaq 100 futures rose by 0.2% and 0.3%, respectively.
Major Indices Suffer Big Losses
During the regular trading session, the S&P 500 posted its largest loss since December, falling by 1.76%. The Dow Jones lost 649.67 points, or 1.48%, while the Nasdaq Composite dropped 2.64%.
After showing gains earlier, the three major stock indices turned negative after President Trump’s announcement that the U.S. would implement a 25% tariff on imports from Canada and Mexico starting Tuesday. Trump emphasized there was “no room left” for the two countries to negotiate these new import duties. Additionally, he imposed a 10% tariff on Chinese goods.
Tech Sector Takes a Hit
The technology sector saw some of the steepest losses, with major companies like Nvidia falling by nearly 9% and Broadcom dropping by 6%. Meanwhile, defensive sectors performed better. The consumer staples sector rose by 0.6%, and health care gained around 0.4%.
Market Outlook Remains Cautious
Monday’s market drop pushed the S&P 500 into the red for 2025. Scott Ladner, Chief Investment Officer at Horizon Investments, stated that he does not expect the market to rebound quickly.
“We don’t see the market going a whole lot of anywhere really fast,” he said in an interview with CNBC. “We are at a place where sentiment is really in the toilet, and that makes getting reversals out of this probably a little bit of a slog.”
However, Ladner noted that the U.S. economy remains strong, with companies experiencing earnings growth of between 10% and 15%.
“We’re not heading into a recession. We’re not even having an earnings recession,” he added. “There’s really nothing out there right now that we can see that should really fully dent corporate earnings power. Our medium-term view is still really positive.”
Economic Updates and Earnings Reports
Looking ahead, New York Federal Reserve President John Williams is scheduled to speak Tuesday afternoon in New York.
Earnings season is winding down, with reports from companies like Best Buy, AutoZone, Target, and CrowdStrike expected on Tuesday.
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