U.S. stock index futures edged higher on Monday as investors braced for the implementation of President Donald Trump’s new tariffs on major trading partners. The Dow Jones Industrial Average futures rose 0.2%, while S&P 500 and Nasdaq futures gained 0.4% and 0.6%, respectively.
The tariffs, set to take effect on Tuesday, target imports from Canada and Mexico, with an increased 20% tariff on Chinese goods. This move has sparked concerns about a potential economic slowdown and higher inflation.
Wall Street’s main indexes experienced their first monthly decline in 2025 in February, influenced by fears of persistent inflation. Investors are now focusing on upcoming economic data releases, particularly the non-farm payrolls report, to gauge the Federal Reserve’s next moves on interest rates.
In the tech sector, Nvidia shares fell nearly 9% to a new low, while Tesla declined almost 3%, nearing critical support levels. These declines contributed to the overall market unease ahead of the tariff implementation.
Despite the market’s cautious tone, some sectors showed resilience. Defensive stocks, including consumer staples, healthcare, and real estate, outperformed, as investors sought safer assets amid the uncertainty.
As the tariffs loom, market participants remain vigilant, assessing the potential impact on global trade dynamics and the broader economy. The interplay between trade policies and economic indicators will likely dictate market sentiment in the coming weeks.
