U.S. stock futures were little changed at the start of the week, with investors positioning for a key Federal Reserve rate decision and a heavy flow of corporate earnings. Sentiment is also being shaped by renewed tariff threats from President Donald Trump and lingering concerns tied to unrest in Minneapolis. Against this backdrop, gold climbed to another all-time high.
Futures hold near flat
U.S. equity futures hovered around the flat line on Monday as traders braced for a packed calendar that includes the Fed’s policy announcement and a wave of quarterly results.
By 03:00 ET, Dow futures were unchanged, S&P 500 futures slipped 4 points, or 0.1%, and Nasdaq 100 futures declined 30 points, or 0.1%.
Wall Street closed Friday on a mixed note, but all three major indices — the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite — finished the week in negative territory.
Investor sentiment was dampened late last week by cautious guidance from chipmaker Intel (NASDAQ:INTC), whose shareholder base includes AI leader Nvidia (NASDAQ:NVDA) and the U.S. government. Markets continue to question when heavy spending on artificial intelligence will translate into meaningful profit growth for companies tied to the technology.
At the same time, there were signs that geopolitical strains, which weighed heavily on equities during the previous week, may be easing. Traders also reviewed data pointing to a still-resilient U.S. economy, albeit one increasingly driven by higher-income consumers and large corporations.
Fed meeting in focus amid leadership uncertainty
Attention now turns to the Federal Reserve’s two-day policy meeting, which concludes Wednesday with a rate decision.
The central bank is widely expected to leave interest rates unchanged in a 3.5% to 3.75% range after a series of cuts late last year aimed at supporting a slowing labor market. Despite President Trump’s repeated calls for aggressive easing, analysts cite strong economic growth, low unemployment and elevated equity valuations as reasons for the Fed to pause.
Also in focus is Trump’s ongoing clash with Fed Chair Jerome Powell, which has raised questions about the central bank’s independence. Earlier this month, Powell said the Justice Department had opened a criminal investigation into him — a move he characterized as politically motivated.
Powell is set to step down as Fed chair in May, though it remains unclear whether he will remain on the policy-setting board. Trump has hinted he may already have a preferred successor, with prediction markets increasingly favoring BlackRock executive Rick Rider over former Fed Governor Kevin Warsh.
“The focus will be on President Trump’s imminent nomination for the new Fed Chair, the upcoming data, and whether that person can corral the rest of the committee into further cuts,” analysts at ING said.
Trump renews tariff warning toward Canada
Trade tensions resurfaced over the weekend as Trump warned he would impose a 100% tariff on Canada if Ottawa were to reach a trade agreement with China.
Trump targeted Canadian Prime Minister Mark Carney, who recently visited China and argued at the World Economic Forum in Davos that smaller nations must push back against economic pressure from global powers.
“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump wrote, adding that “all Canadian goods and products coming into the U.S.A.” would face a 100% levy if a deal were signed.
Carney responded by saying Canada has “no intention” of pursuing a free trade agreement with China, emphasizing that Ottawa would honor its commitments under the existing agreement with the U.S. and Mexico.
“[W]e don’t think investors need to spend a lot of time worrying about Trump’s 100% Canada tariff actually coming to fruition, but the fact he continues to impetuously make these threats is gradually undermining sentiment,” analysts at Vital Knowledge noted.
Shutdown fears resurface after Minneapolis unrest
Concerns about another U.S. government shutdown have resurfaced following renewed unrest in Minneapolis, where protesters clashed with federal immigration authorities.
According to the Wall Street Journal, several Democratic senators who previously sought to avoid a shutdown after last year’s record 43-day closure are now adopting a tougher stance. The shift follows the shooting of a man by a U.S. Border Patrol officer in Minneapolis.
Some Democrats have indicated they will oppose funding for agencies overseeing U.S. Border Patrol and Immigration and Customs Enforcement, calling for tighter oversight of enforcement practices. Republicans retain a Senate majority, but not enough to pass most legislation without some Democratic support.
Gold rally extends to fresh records
Gold surged past $5,100 an ounce on Monday, extending last week’s sharp rally as investors flocked to the safe-haven asset amid ongoing geopolitical uncertainty.
The precious metal gained more than 8% last week and is up nearly 17% so far this year, driven by geopolitical risks, expectations of easier U.S. monetary policy later in 2026 and sustained demand from central banks.
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