U.S. stock futures slid early Monday as investors reacted to President Donald Trump's announcement of new 30% tariffs on imports from the European Union and Mexico, set to begin on August 1. The move adds to global trade tensions but markets rebounded slightly from their steep overnight lows as investors looked ahead to second-quarter earnings and upcoming inflation data for direction. At around 6:15 a.m. ET, Dow Jones Industrial Average futures were down 140 points, or 0.3%, after falling more than 200 points overnight. S&P 500 futures slipped 0.28%, and Nasdaq 100 futures fell 0.30%, reflecting broad concerns about the global trade outlook and its impact on U.S. companies.

Before the opening bell, major index futures were in the red:

This weakness reflects renewed market jitters over potential economic fallout from escalating trade tensions and uncertainty around upcoming economic data. The major catalyst? Fresh tariff threats. President Trump has announced plans for 30% tariffs on EU and Mexican imports starting August 1, stoking fears of retaliatory moves and higher input costs for U.S. manufacturers.

While Wall Street analysts largely see the move as part of Trump’s negotiation playbook, the timing—on the eve of a packed earnings week—has added an extra layer of stress. Here’s how the big three market ETFs are moving in early trading: Some individual names are still standing out despite the cautious sentiment:

On Saturday, Trump declared that the United States would impose 30% tariffs on goods from both the EU and Mexico starting August 1. This sparked concern among investors and trading desks early Monday. However, optimism remains that these tariffs might be negotiated down as both EU and Mexican officials signaled willingness to continue discussions with the Trump administration through July.

This announcement follows a recent pattern where Trump uses tariff threats as leverage ahead of trade negotiations. The market reaction was swift, though losses eased as traders priced in the possibility of last-minute changes or delays.

The new tariff threats are arriving just as investors await fresh inflation data this week. Economists and market strategists are watching closely to see how these duties—along with existing tariffs—are influencing consumer prices and corporate profit margins.

Peter Boockvar, CIO at Bleakley Financial Group, noted on CNBC’s Fast Money that tariffs bring inflation, but who absorbs the cost depends on the company. “Those with pricing power will pass it to consumers,” Boockvar said. “Those without will see a hit to profits.”

So far, inflationary effects have been uneven, and this week’s data could help clarify how embedded price increases have become.

In addition to trade concerns, markets are watching the growing rift between the Trump administration and Federal Reserve Chair Jerome Powell. On Sunday, National Economic Council Director Kevin Hassett told ABC News that Trump has the authority to fire Powell “if there’s cause.”

Meanwhile, OMB Director Russell Vought accused Powell of “gross mismanagement” and criticized a costly renovation of the Fed’s headquarters, suggesting that Powell misled Congress about the project. Trump added fuel by saying Powell’s resignation would be a “good thing.”

This political pressure on the Fed adds a layer of uncertainty as the central bank balances economic data, interest rates, and now, political tension.

Investors are preparing for a flood of updates that could shape the market’s next big move: All of this comes as Wall Street keeps a close eye on the , with growing speculation about a possible . However, July cuts remain off the table for now.
Despite trade concerns, investors are gearing up for second-quarter earnings, with results from major banks like JPMorgan Chase, Goldman Sachs, and Bank of America set to be released starting Tuesday.

This week will offer a clearer view into how corporations are handling inflation, rising costs, and slower global growth. Financial stocks in particular will be in focus, as investors assess loan growth, interest income, and credit conditions.

Given the recent weakness—the S&P 500 fell 0.3% last week, while the Dow dropped 1%, both snapping multi-week winning streaks—strong earnings could provide a catalyst for recovery.

According to Bloomberg, EU officials are now considering retaliatory tariffs if the U.S. tariffs are not withdrawn. Sources suggest the EU may expand talks with other countries affected by previous Trump tariffs in a strategic pushback.

With August 1 set as the tariff start date, the next few weeks will be crucial. Markets will be watching diplomatic signals, trade negotiation updates, and possible EU moves closely.

Outside of trade and inflation, Bitcoin surged again, hitting a record high of $119,300, marking its fourth all-time high in the past week. The rally comes just ahead of “Crypto Week” starting July 14, during which lawmakers are expected to discuss regulatory proposals around digital assets, stablecoins, and blockchain technologies.

Separately, Tesla CEO Elon Musk said shareholders will vote on whether the company should invest in his AI firm xAI, following reports that SpaceX plans to invest $2 billion into the startup behind the Grok chatbot.

US stock futures

US stock market futures are pointing to a softer open as Wall Street reacts to fresh trade worries, upcoming inflation data, and the kickoff of earnings season. Traders are closely watching for more clarity as the week unfolds.

What should investors watch now?

This week’s market focus is threefold: With so many headlines at once, volatility could remain elevated. But for now, investors appear to be cautiously betting that negotiations—both trade and political—may take a more moderate turn in the days ahead.
Stock futures dropped due to Trump's new 30% tariffs on EU and Mexico starting August 1, sparking trade tension.

Markets are watching earnings reports, new inflation data, and tensions between Trump and the Fed Chair Powell.