U.S. stock futures took a hit early Monday as traders reacted to President Trump’s latest tariff measures against Canada, Mexico, and China.
By 03:31 ET (08:31 GMT):
- S&P 500 futures fell 82 points (-1.6%)
- Nasdaq 100 futures dropped 355 points (-1.6%)
- Dow futures slid 515 points (-1.2%)
Trump’s tariffs include a 25% levy on Canadian and Mexican imports (with a 10% tax on Canadian energy products) and a 10% tariff on Chinese goods, set to take effect Tuesday.
In response:
- Canada & Mexico are preparing retaliatory tariffs.
- China’s Ministry of Commerce is taking the matter to the World Trade Organization.
- Economists warn the tariffs could spark higher inflation, weaken U.S. growth, and even push Canada and Mexico toward recession due to their heavy trade reliance on the U.S.
Trump acknowledged the move could bring “short-term pain” but hinted that tariffs on the European Union are also coming—though no timeline was given.
Global Markets React
Asian markets sold off, especially automakers with supply chains tied to Mexico:
- Toyota (TYO:7203)
- Honda (TYO:7267)
- Nissan (TYO:7201)
Currency, Commodities, and Crypto
- U.S. Dollar Strengthens → Inflation concerns lessen chances of Fed rate cuts.
- Gold Slips → Dollar gains reduce its safe-haven appeal.
- Oil Rallies → Traders fear supply disruptions, though demand concerns cap gains.
- Crypto Sinks → Bitcoin breaks below $100,000, Ethereum drops 16%, as risk appetite fades.
China’s Manufacturing Growth Slows
China’s Caixin/S&P Global Manufacturing PMI came in at 50.1 (below 50.6 expected), signaling weaker-than-expected growth as trade concerns dampen sentiment.
Key Earnings & Data This Week
Markets are watching corporate earnings and economic data for further direction.
Notable Earnings:
- Tuesday: AMD, GOOGL, SNAP
- Wednesday: DIS, UBER
- Thursday: AMZN
Tech giants Alphabet (GOOGL) and Amazon (AMZN) report this week, with investors eyeing AI investment trends after China’s DeepSeek introduced a low-cost AI model that rattled Silicon Valley last week.
Key Economic Data:
- Tuesday: JOLTS Job Openings
- Wednesday: ADP Non-Farm Employment Change
- Thursday: Jobless Claims
- Friday: Non-Farm Payrolls, Michigan Consumer Sentiment
Nasdaq Outlook: Stuck in a Range
Last week, we pointed out:
“If sellers successfully defend 22100, price can test 21550, 21300, and 21100.”
Sure enough, Nasdaq gapped down Sunday night, hitting 21100, which became Monday’s session low before rebounding to a high of 21966.
Key Levels This Week:
- Support:21550 (Volume Point of Control)
- If buyers hold, targets: 21860, 22100, 22450 (ATH)
- If buyers fail, sellers can push to 21430, 21100, 20800
Quick Reference Levels:
- Upside: 21860, 22100, 22450
- Downside: 21430, 21100, 20800
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