From Financial Modeling Prep: 2025-02-03 02:22:41

U.S. stock index futures plummeted as Trump imposed tariffs on Canada, Mexico, and China, sparking global trade tensions. S&P 500, Nasdaq 100, and Dow Jones futures dropped, while the U.S. Dollar strengthened and Canadian Dollar & Mexican Peso weakened.

The selloff continued from Friday as inflation concerns lingered post PCE price index data. Trump’s tariffs include 25% on Canada & Mexico, 10% on China, with potential for broader duties. Retaliation clause and hints of universal import duty add to uncertainty.

Tariffs pose inflation risks, potentially forcing the Fed to maintain higher interest rates. Trade war fears arise as affected nations vow retaliation, threatening global trade flows. Stock market volatility hits tech, manufacturing, and retail sectors, impacting corporate earnings.

Investors advised to monitor sector rotation, hedge with commodities like gold and oil, and track economic indicators for insights into inflation and economic health. Fed Chair Powell’s comments and U.S. corporate earnings reports will be closely watched for policy shifts and business strategies amid trade tensions.



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