U.S. stock index futures fell Sunday evening as investor sentiment weakened ahead of President Donald Trump’s April 2 tariff deadline. Risk aversion grew amid escalating trade tensions and persistent inflation concerns, following a sharp Wall Street selloff on Friday.
S&P 500 futures declined 0.7% to 5,585.75, Nasdaq 100 futures dropped 1.2% to 19,217.50, and Dow Jones futures slipped 0.4% to 41,693.0 by 20:05 ET. The losses followed Friday’s slump, driven by hotter-than-expected inflation data, raising fears of prolonged high interest rates and economic slowdown.
Markets were further unnerved by reports that Trump is planning broader and more aggressive trade tariffs, with April 2 marked as "liberation day." The White House is expected to target multiple sectors—including commodities, semiconductors, and pharmaceuticals—in addition to a 25% tariff on all non-U.S. cars. These tariffs, likely to be absorbed by American importers, could stoke inflation and weigh on U.S. growth.
Adding to the bearish outlook, Goldman Sachs now sees a 35% chance of a U.S. recession within the next year, and projects inflation to stay above the Federal Reserve’s 2% target in 2025.
Friday’s inflation report, showing a hotter PCE price index—the Fed’s preferred gauge—sparked expectations that interest rates may remain elevated. Concerns over the economic impact of tariffs only compounded investor fears.
Technology stocks also dragged markets lower, with NVIDIA and other AI-related firms hit by signs of slowing investment in data centers. The S&P 500 fell nearly 2% to 5,580.94, the Nasdaq Composite lost 2.7% to 17,322.99, and the Dow Jones dropped 1.7% to 41,683.90.
The combination of trade risks, inflation pressures, and tech sector weakness continues to cloud the U.S. market outlook.


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