U.S. Stock Futures Fall on Tariff Fears and Trump’s Criticism of the Fed
U.S. stock futures slipped in early Monday trading as investors digested the implications of President Donald Trump’s renewed tariff threats and his sharp criticism of Federal Reserve Chair Jerome Powell.
As of 04:44 ET (08:44 GMT), Dow Jones futures were down 351 points, or 0.9%, while S&P 500 futures declined 52 points, or 1.0%. Nasdaq 100 futures also retreated, falling 192 points, or 1.1%. U.S. markets remained closed on Friday for the holiday, and Easter Monday limited activity in several European markets, contributing to thin trading volumes.
Analysts at Vital Knowledge noted that April 2—when Trump introduced sweeping reciprocal tariffs—may have marked a peak in trade tensions. “We fully expect ongoing negotiations to yield ‘deals’ that bring down the duty burden,” the firm said. Trump administration officials are aiming to finalize multiple trade agreements during the current 90-day pause in elevated duties, though some experts remain skeptical about the feasibility of securing so many deals within that window.
Adding to market anxiety, Trump has reportedly revived discussions about removing Powell from his position at the helm of the U.S. central bank, criticizing him for being too slow to cut interest rates. However, The New York Times reported that the president is aware such a move could rattle already-volatile global markets.
“Trump’s tariffs seem likely to fuel inflation and, even if the effect is ‘transitory,’ markets will remain on edge during the 6–12 month adjustment period,” analysts at Vital Knowledge added. “White House frustration with Powell is expected to grow during this time.”
Corporate Earnings in Focus
Amid growing uncertainty, investors are bracing for a packed earnings calendar this week. Alphabet (GOOGL), parent company of Google, and electric vehicle maker Tesla (TSLA) are set to kick off the reporting season for the so-called “Magnificent Seven” mega-cap tech giants.
These earnings reports may offer some relief to markets rattled by Trump’s trade stance. In recent years, the Magnificent Seven have powered much of the U.S. equity rally, although their shares have seen declines so far this year.
Other major names scheduled to report include Intel (INTC), Merck (MRK), IBM (IBM), Procter & Gamble (PG), and American Airlines (AAL). Last week, United Airlines issued a dual-scenario outlook, one of which assumes a recession-driven hit to revenue and profits.
In premarket trade, Netflix (NFLX) shares edged higher after executives expressed confidence in the company’s ability to weather economic headwinds linked to tariffs. Despite recent data showing declining U.S. consumer sentiment and rising inflation expectations, co-CEO Greg Peters said Netflix has yet to observe any meaningful shift in subscriber behavior following the company’s stronger-than-expected quarterly earnings released late last Thursday.
Meanwhile, the CBOE Volatility Index (VIX), a widely watched gauge of market fear, eased to around 30 after peaking near 60 earlier this month. The long-term average sits at approximately 17.6, according to LSEG Datastream data cited by Reuters.
Gold Hits Record High, Oil Slides
Gold prices surged to a new all-time high on Monday, fueled by concerns over escalating trade tensions between the U.S. and China, as well as a weakening dollar. Spot gold rose 2.0% to $3,393.97 by 05:10 ET, while June gold futures jumped 2.3% to $3,404.91.
The rally in bullion was underpinned by a drop in the U.S. Dollar Index to a three-year low, making gold more affordable for foreign buyers and bolstering demand. The precious metal is also benefiting from its status as a traditional safe haven in times of economic uncertainty.
In contrast, oil prices edged lower amid signs of progress in negotiations between the U.S. and Iran—developments that could lead to increased global supply. Additionally, concerns that trade-driven economic weakness could dampen energy demand also weighed on crude prices.