U.S. stock futures tumbled Sunday night (Monday AEDT) as investors assessed the economic impact of fresh tariffs imposed by President Donald Trump on key trading partners.
By 10:15 am AEDT (11:15 pm GMT) Dow futures, S&P futures and Nasdaq futures declined by 1.2%, 1.8%, and 2.6%, respectively.
On Saturday, Trump imposed a 25% tariff on goods from Mexico and Canada, alongside a 10% levy on Chinese imports. The U.S. conducts approximately US$1.6 trillion in annual trade with these three countries, making the new tariffs a significant development for global markets.
Canada responded with retaliatory tariffs, while Mexico announced plans to consider levies on U.S. imports.
Meanwhile, China’s government stated it would file a lawsuit with the World Trade Organisation and take necessary countermeasures.
Beyond trade concerns, investors are closely watching fourth-quarter earnings reports, with over 120 S&P 500 companies set to release their results.
Notable reports include tech giants Alphabet, Amazon, and Palantir, as well as consumer-facing companies Walt Disney and Mondelez.
Additionally, the January nonfarm payrolls report due later in the week will provide further insight into the labor market, amid expectations of 175,000 jobs added last month, with the unemployment rate remaining steady at 4.1%.
