U.S. Stock Futures Fall as Trump Imposes Tariffs, Inflation Data in Focus

U.S. stock index futures declined Monday evening after President Donald Trump signed executive orders imposing tariffs on steel and aluminum imports, fueling investor caution ahead of key inflation data.

S&P 500 Futures slipped 0.2% to 6,075.50, while Nasdaq 100 Futures dropped 0.3% to 21,789.25. Dow Jones Futures lost 0.2% to 44,504.0. The decline followed a positive Wall Street session, where dip-buying pushed stocks higher after last week’s losses, with tech giants leading gains.

Trump’s tariffs impose a 25% duty on steel and aluminum, revoking exemptions for Canada, Mexico, and Brazil. He also hinted at potential tariffs on cars, semiconductors, and pharmaceuticals, warning of further hikes to match foreign duties. The renewed tariff policies rattled markets last week but triggered a short-lived rebound on Monday.

Wall Street saw gains in heavyweight tech stocks, particularly chipmakers, after major AI companies signaled increased investments for 2025. Energy stocks also surged alongside rising oil prices, as investors anticipated supply disruptions. However, cyclical stocks remained weak amid economic uncertainty.

Investor focus now shifts to Wednesday’s Consumer Price Index (CPI) data, expected to confirm persistent inflation in January. A hotter-than-expected reading could dampen hopes for Federal Reserve rate cuts, as multiple Fed officials have cautioned that Trump’s trade policies might fuel inflation, making the central bank hesitant to ease monetary policy.

Markets remain volatile as investors weigh trade tensions, inflation risks, and Fed policy signals.