United States stock futures advanced on Sunday evening (Monday AEDT), as investors weighed the potential for further market gains while keeping an eye on economic growth concerns and Federal Reserve policy signals.
By 9:30 am AEDT (10:30 pm GMT) Dow Jones Industrial Average futures and S&P 500 futures added 0.5% apiece, while Nasdaq 100 futures rose 0.6%.
U.S. benchmarks finished last week in positive territory, avoiding a fourth consecutive weekly decline. However, investor sentiment remains cautious amid concerns over potential economic headwinds, particularly as President Donald Trump’s 2 April start date for reciprocal tariffs approaches.
Meanwhile, analysts at ANZ noted: "Early comments from Fed speakers after last week’s FOMC meeting reiterated that policymakers expect the inflation impact of tariffs to be transitory. Chicago Fed President Goolsbee said the US’s goods imports are just 11% of GDP, meaning one-off tariffs that are not followed by retaliation and that do not spill over will likely have a transitory impact on inflation.
"If that is the case, the monetary policy can look through them. He added that if there are larger tariffs, retaliation and ensuing supply shocks, that will make it harder for the Fed to look through them."
“The New York Fed’s president, John Williams, said his assessment is that the current restrictive monetary policy stance is appropriate, given the solid labour market and inflation.”
Investor anxiety over tariffs has been compounded in recent weeks by weakening economic data, raising fears about economic stability.
Nevertheless, Federal Reserve Chair Jerome Powell attempted to allay concerns last week, suggesting that any economic disruptions from tariffs would likely be temporary.
Looking ahead, investors will focus on consumer confidence and weekly jobless claims data set for release later in the week.
