US stock futures drop after Trump imposed tariffs on Colombia, causing caution among investors

From Investing.com: 2025-01-26 19:37:32

U.S. stock index futures fell after Trump threatened tariffs on Colombia, causing caution among investors ahead of the Federal Reserve interest rate decision and inflation readings. Nasdaq futures declined 0.5%, S&P 500 dropped 1.2%, and Dow Jones inched 0.2% lower.

Trump imposed tariffs and sanctions on Colombia after a dispute over repatriation flights, prompting Colombia to threaten retaliatory tariffs on U.S. goods. The move is expected to impact Colombian exports like petroleum, coffee, and flowers heavily reliant on the U.S. market.

China’s DeepSeek unveiled a new AI model, R1, posing a competitive threat to established players like NVIDIA. The announcement caused NVIDIA stock to decline more than 3%. Despite this, Wall Street saw gains last week driven by optimism around Netflix’s earnings and the Stargate initiative.

Investors are cautious ahead of the Fed meeting and inflation data. The Fed’s preferred inflation gauge data and estimates for the fourth quarter are due this week, along with consumer confidence figures for December and January. Earnings reports from major tech companies like Meta Platforms, Microsoft, and Tesla will also guide investor sentiment.



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