U.S. Futures Slip as Trump Tariff Hike, Geopolitical Tensions Weigh on Markets

U.S. stock index futures declined on Sunday evening as renewed trade tensions and geopolitical concerns rattled investor sentiment. President Donald Trump announced a hike in steel import tariffs from 25% to 50%, effective June 4, reigniting fears of a prolonged trade war. The move, accompanied by accusations that China violated a recent tariff rollback agreement, sent a warning to markets that higher trade barriers are likely to remain.

S&P 500 futures fell 0.3% to 5,899.25, Nasdaq 100 futures dropped 0.3% to 21,307.25, and Dow Jones futures slipped 0.3% to 42,170.00 as of 23:23 GMT. The retreat follows strong May gains, driven by hopes of easing trade tensions, particularly a temporary deal with China. However, fresh comments from the Trump administration, including Commerce Secretary Howard Lutnick stating that tariffs are “here to stay,” suggest that progress has stalled.

Adding to the pressure, markets are bracing for key U.S. economic data on Monday, including manufacturing PMI readings from S&P Global and ISM, as well as a closely watched speech by Federal Reserve Chair Jerome Powell. Investors are looking for guidance on inflation trends and future interest rate moves after recent PCE data showed modest cooling.

Meanwhile, geopolitical risks are rising. Reports of a possible terrorist attack at a rally in Boulder, Colorado, and intensifying conflict between Russia and Ukraine have dampened risk appetite ahead of expected peace talks.

On Friday, Wall Street ended the month mixed. The S&P 500 finished flat but posted a 6% gain for May. The Dow Jones also closed unchanged, ending the month up 3.9%, while the Nasdaq Composite slipped 0.3% but gained 2% in May.