U.S. stock futures moved modestly lower on Monday as investors assessed renewed trade policy uncertainty following the Supreme Court’s rejection of President Donald Trump’s emergency tariffs, while attention turned toward upcoming earnings from AI heavyweight Nvidia later this week.
As of 05:50 ET, Dow Jones futures were down 110 points, or 0.2%, S&P 500 futures declined 16 points, or 0.2%, and Nasdaq 100 futures fell 100 points, or 0.4%.
Wall Street’s main indices finished last week higher, supported by optimism after the court ruling and relief that geopolitical tensions had not escalated into U.S. military action against Iran.
Trump raises tariffs to 15% following court decision
Over the weekend, Trump announced plans to increase a temporary universal import tariff to 15%, up from an initially proposed 10%, shortly after the Supreme Court ruled that he had exceeded his authority by invoking emergency powers to impose sweeping trade duties.
The president labeled the decision a “disgrace” and quickly turned to provisions under the 1974 Trade Act to introduce global tariffs of 15% for up to 150 days, aiming to address what he described as “international payment problems.”
“The Supreme Court’s decision to strike down President Trump’s use of IEEPA tariffs removes one legal channel but does not signal the end of the tariff regime,” said Lale Akoner, global market analyst at eToro. “In our view, markets were already pricing in a restructuring of trade policy, specifically the removal of IEEPA tariffs and a shift toward a more formalised 15% framework. This ruling accelerates that transition rather than derailing it.”
“The near-term risk is uncertainty: shifting legal foundations could dampen activity temporarily. However, if the outcome is a more predictable tariff structure, equities may ultimately benefit.”
Reports indicated that several countries which had reached trade agreements with Washington over the past year are now seeking clarification or renegotiation in light of the latest policy changes.
The European Commission — the executive arm of the European Union and chief trade negotiator for its 27 member states — urged the United States to respect the terms of a 2025 agreement and requested “full clarity” on how tariff policy will evolve after the ruling.
Against this backdrop, investors are also watching remarks expected Monday from Federal Reserve Governor Christopher Waller.
Waller, scheduled to speak in Washington on the economic outlook, was among two policymakers who opposed the Federal Reserve’s January decision to keep interest rates unchanged within a 3.5% to 3.75% range.
Durable goods orders and factory orders data are also due later in the session.
Nvidia earnings take center stage
Market focus this week is increasingly shifting toward results from artificial intelligence leader Nvidia (NASDAQ:NVDA), widely viewed as a bellwether for global AI demand.
The chipmaker, whose processors power much of today’s AI infrastructure, is set to release fiscal fourth-quarter earnings on Wednesday. Investing.com forecasts expect earnings per share of $1.52 on revenue of $65.56 billion.
That compares with EPS of $0.89 and revenue of $39.33 billion reported a year earlier.
The earnings arrive amid growing debate about the sustainability of the AI boom and its broader impact on technology markets. Software and logistics stocks have recently come under pressure due to concerns about AI-driven disruption, with weakness spreading across multiple sectors.
Oil retreats after last week’s rally
Oil prices declined on Monday, giving back part of last week’s strong gains as traders evaluated prospects for a third round of nuclear negotiations between the United States and Iran alongside ongoing uncertainty tied to U.S. trade policy.
Brent crude futures fell 0.7% to $70.83 per barrel, while U.S. West Texas Intermediate crude futures dropped 0.7% to $66.05 per barrel.
Both benchmarks had surged nearly 6% last week amid fears of a potential U.S.-Iran conflict and an unexpected drawdown in U.S. crude inventories.
Washington and Tehran are now expected to hold a third round of nuclear talks on Thursday in Geneva, raising hopes that diplomacy could reduce the risk of disruptions to Middle Eastern oil supplies.
Iran remains a major producer within the Organization of the Petroleum Exporting Countries (OPEC) and holds some of the world’s largest proven crude reserves.
Leave a Reply