U.S. stocks were poised for another decline on Monday, extending a recent slump attributed to President Donald Trump's tariff policies. A recent CNBC survey indicates a shift in public sentiment, with Americans' views on Trump's handling of the economy turning net negative for the first time during his two terms in office. The three major U.S. indexes have fallen in three of the last four weeks, with the S&P 500 sliding about 1.5% during the holiday-shortened trading week, while the Dow Jones Industrial Average and Nasdaq Composite both fell more than 2%. Investors are closely monitoring U.S. trade negotiations and any threats to the Federal Reserve's independence after Trump hinted at potentially removing Fed Chair Jerome Powell.

First-quarter earnings reports are anticipated to provide further insights into the market's trajectory. Companies across various sectors will offer commentary on the effects of tariffs and concerns about a potential U.S. recession on consumer and business spending. Tesla's report will be closely scrutinized, as its stock has already fallen 40% this year amid broader market turbulence and boycotts related to CEO Elon Musk's advisory role to Trump. Alphabet is also set to release its results, following a week where tech stocks led the market's decline.

According to the latest CNBC All-America Economic Survey, Americans have become increasingly critical of Trump's economic management, citing tariffs and federal spending cuts as factors impacting sentiment. The survey reveals that only 43% of respondents approve of Trump's handling of the economy, while 55% disapprove, marking the first time his approval rating on the issue has turned net negative in a CNBC poll. Additionally, more Americans now anticipate the economy worsening than at any point since 2023.

Trump's trade war with China is escalating, drawing in other countries. Beijing has vowed to retaliate against any nations collaborating with the U.S. to isolate the Chinese economy. This warning came after reports that the U.S. intends to leverage tariff negotiations to pressure trading partners into limiting their cooperation with China. China has stated its firm opposition to any agreement made at its expense and has pledged to take reciprocal countermeasures.

Pope Francis, the first Roman Catholic pontiff from the Americas, has passed away at the age of 88, according to a Vatican statement. Having assumed leadership in 2013, he led the church through a period marked by significant global social changes, including debates surrounding LGBTQ+ rights and abortion, as well as the rise of right-wing populism and anti-migrant sentiment in both Europe and the U.S. Francis, originally from Argentina, prioritized assisting impoverished and marginalized communities and emphasized the importance of addressing climate change.