U.S. stock index futures fell Sunday evening following a strong week on Wall Street, as President Donald Trump announced new tariffs on Colombia, sparking market concerns. Investors are also adopting a cautious stance ahead of the Federal Reserve's interest rate decision and key economic data.
By 18:45 ET (23:45 GMT), S&P 500 Futures dropped 0.5% to 6,103.0 points, Nasdaq 100 Futures fell 1.2% to 21,646.25 points, and Dow Jones Futures edged 0.2% lower to 44,535.0 points.
Trump revealed plans to impose a 25% tariff on Colombian imports, escalating to 50% next week, after Colombia rejected U.S. repatriation flights. Additional sanctions include travel bans and visa revocations for Colombian officials. Colombia responded with threats of reciprocal tariffs on U.S. goods, potentially impacting sectors like petroleum, coffee, and flowers. Trump's announcement follows his earlier warning of possible tariffs on Mexico, Canada, China, and the EU by February 1.
Investors are closely watching the Federal Reserve's upcoming policy meeting, alongside December’s PCE price index, Q4 GDP estimates, weekly jobless claims, and consumer confidence data. These metrics could influence market direction amid inflationary concerns.
In tech, China’s AI startup DeepSeek unveiled its cost-efficient R1 model, comparable to OpenAI's ChatGPT, pressuring established players like NVIDIA. Nvidia’s stock dropped over 3% Friday and could face further challenges.
Last week, Wall Street saw gains driven by Netflix's strong earnings and the Stargate initiative. The S&P 500 rose 1.7% to 6,101.24 points, while the Dow Jones climbed 2.2% to 44,424.25, and the NASDAQ added 1.7%. This week, investors anticipate earnings reports from Meta, Microsoft, and Tesla, which may shape market sentiment further.


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