S&P and Dow Jones futures fall as Trump tariffs revive uncertainty

• Dow Jones futures fell about 127 points, with S&P 500 and Nasdaq-100 futures declining 0.25% to 0.4%, reversing Friday's gains when major indexes had posted weekly increases.
• Nvidia earnings due Wednesday are closely watched for signals on AI spending, as high valuations and concerns about AI investment returns have pressured tech stocks, with the S&P 500 software index down over 20% this year.
• Bitcoin dropped nearly 3% to $66,141, oil prices weakened with Brent at $70.27/barrel, while gold and silver mining stocks advanced with Newmont up 1% amid market uncertainty.

Market Summary: Tariff Uncertainty Weighs on US Futures

Market Movement:

US stock index futures declined Monday as Dow Jones futures fell 127 points, while S&P 500 and Nasdaq-100 futures dropped 0.25% to 0.4%. This reverses Friday's positive momentum when major indexes posted weekly gains, with the Nasdaq ending a five-week losing streak and the Dow rising over 230 points.

Key Catalyst:

President Trump implemented a new 15% global tariff using different statutory authority after the Supreme Court struck down most earlier levies in a 6-3 ruling Friday. The Court found the emergency law previously used did not authorize such measures. The ruling leaves open a potential $170 billion gap in US finances regarding possible refunds. Trump warned additional tariffs could follow in coming months, with current duties remaining up to five months.

Sector Performance:

• Technology: Mixed results with Nvidia down 0.15% ahead of Wednesday earnings, a critical indicator for AI spending trends. Software stocks remain under pressure, with the S&P 500 software and services index down over 20% year-to-date.
• Pharma: Eli Lilly surged 2.5% after competitor Novo Nordisk's obesity drug disappointed in trials.
• Crypto: Bitcoin fell below $65,000 before recovering to $66,141, down nearly 3% in 24 hours. Coinbase and Strategy both dropped over 1%.
• Precious Metals: Gold and silver miners advanced with Newmont up 1% and Hecla Mining rising 1.8%.

Commodities:

Brent crude fell 0.5% to $70.27/barrel; US crude declined to $66.28.

Outlook:

Investors focus on tariff impacts on inflation and growth, upcoming earnings (Salesforce, Intuit, Nvidia), durable goods orders, and geopolitical developments surrounding Iran.