U.S. stock futures dropped early on Monday as traders braced for what President Donald Trump has called “Liberation Day,” seeking clarity on his tariff plans.
Stock Futures Decline
Futures for the Dow Jones Industrial Average fell by 178 points, or 0.43%. S&P 500 futures declined by 0.66%, and Nasdaq 100 futures dropped 1.08%.
The decline in stock futures comes as the Trump administration prepares to enact a series of tariffs on Wednesday. The most notable of these is a 25% levy on all cars not made in the U.S. Additionally, Trump is expected to announce plans for reciprocal tariffs.
“Liberation Day” Looms
Trump has referred to Wednesday as “Liberation Day,” the day when these tariffs are set to take effect. This has caused uncertainty in the markets, as investors remain unsure about the full scope of these trade measures. The tariffs have already weighed heavily on stocks, pushing them lower on Friday, the last full trading day of March.
Over the weekend, Trump offered little to ease these concerns. A report from The Wall Street Journal revealed that the president has been urging his advisors to take a more aggressive stance on tariffs. In a Saturday interview with NBC News, Trump stated that he “couldn’t care less” if foreign automakers raise their prices due to the new tariffs.
What Investors Are Watching
As the tariffs are set to take effect, investors are hoping to gain more clarity on which trading partners will be impacted and to what extent. Emmanuel Cau, an equity strategist at Barclays, explained that “tariff risk has been well telegraphed and is largely priced into parts of the market.” However, he warned that no one benefits from a trade war, and growing concerns about global economic growth remain.
Cau added that negotiations are expected to begin after April 2, leading to continued uncertainty about the final details of the tariffs.
Market Outlook for March
The uncertainty surrounding tariffs has contributed to a rough March for U.S. stock markets. The S&P 500 is down 6.3% for the month, while the Dow Jones Industrial Average is set to lose 5.2%. The tech-heavy Nasdaq Composite has fallen by 8.1%.
Economic Data to Watch
Investors are also looking ahead to a busy week of economic reports, particularly the March jobs report, set to be released on Friday, April 4, at 8:30 a.m. ET. This report could provide further insight into the state of the economy and influence market sentiment moving forward.
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