U.S. stock futures swung between small gains and losses early Friday as Wall Street closed out a turbulent week. Investors are watching closely as President Trump's major tax and spending proposal inches forward, stirring concerns about its long-term impact on the U.S. economy. The Dow Jones Industrial Average and the S&P 500 are both heading for weekly drops of about 2%, while the tech-focused Nasdaq Composite is down roughly 1.5%. This cautious trading mood comes just ahead of the Memorial Day weekend, when markets will be closed on Monday.

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• Global leaders monitoring Trump’s policies closely.
• G-7 summit yields a , avoids direct trade comments.

The main driver behind this week’s market shakiness is rising concern over the U.S. deficit. Trump’s revised tax-and-spending bill cleared a major hurdle in the House, but it’s raising alarm bells over how much it could increase the national debt. That fear has sent long-term Treasury yields climbing. On Friday, the 30-year yield stayed above the 5% mark — a level not seen since the 2008 financial crisis.

Rising yields make borrowing more expensive and often hurt stock prices, especially for companies that rely heavily on financing for growth.

Investors are still digesting the impact of Trump’s tough stance on trade. A wave of tariffs has introduced new uncertainty into global markets. While some companies are flagging the trade war in their quarterly results, investors appear less reactive than they were a month ago. After April’s wild swings, many traders seem to be holding out for new, clearer market catalysts. It’s not panic — at least not yet. But traders are definitely more cautious. With the long weekend ahead and big economic decisions looming, investors aren’t making bold moves. There’s a clear sense of “wait and see” in the air, as markets balance short-term news with long-term policy changes. One of the biggest potential market movers next week is Nvidia’s earnings report, due out Wednesday after the close. Nvidia has been caught in the crossfire of Trump’s trade strategy and has also been at the center of debates over major investments in AI. That said, expectations for post-earnings stock swings are lower than in previous quarters. Some traders believe the results are already priced in.

What Should Investors Keep an Eye On?

Looking ahead, the combination of high Treasury yields, federal deficit concerns, and trade uncertainty means investors need to stay alert. Next week, beyond Nvidia's report, more economic data is expected that could influence interest rates and market sentiment.

In short, the stock market today reflects a mix of caution, concern, and curiosity. As Washington pushes forward on tax and trade changes, Wall Street remains on edge — and the next few weeks could set the tone for the summer market mood.

Rising Treasury yields and concerns over Trump’s tax-and-trade policy are the main factors.

Why are Dow, S&P 500, and Nasdaq futures wavering this week?
Markets are reacting to deficit fears and cautious investor sentiment ahead of Memorial Day.