US stock futures fall as inflation data, Trump trade policies rattle markets
U.S. President Donald Trump speaks during a briefing on wildfire damage as he visits the Pacific Palisades neighborhood that was damaged by the Palisades Fire, in Los Angeles, California, U.S., January 24, 2025. REUTERS/Leah Millis
US stock futures declined as investors digested the latest February jobs report and braced for a packed week of economic data, with inflation taking center stage. Market jitters continued to stem from President Donald Trump's unpredictable trade policies and their potential impact on inflation and economic growth.
Futures across major indexes decline
Futures tied to the Dow Jones Industrial Average (YM=F) slipped 0.5%, while S&P 500 futures (ES=F) also dropped 0.5% after the benchmark index logged its worst weekly performance since September. Nasdaq futures (NQ=F) fell 0.6%, indicating a continuation of the downward momentum from last week when all three indexes shed over 2%.
Market sentiment remains fragile, weighed down by ongoing trade tensions and uncertainty over future economic policy direction.
Trade war concerns resurface
Investors remain focused on the renewed tariff negotiations between the United States, Mexico, and Canada, with the Trump administration signaling further protectionist measures. In a Sunday interview with Fox News, President Trump downplayed recession fears, describing the economy as going through “a period of transition” while defending his tariff-centric trade approach.
The return of trade-related volatility comes as Canada’s incoming Prime Minister Mark Carney prepares to take office amid heightened economic strain caused by ongoing US tariff threats.
Key inflation data in focus
This week will see the release of critical data that could further shape investor expectations on inflation and interest rates. On Monday, the Federal Reserve’s consumer inflation expectations survey is scheduled, followed by February’s Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday.
The week wraps with the University of Michigan’s consumer sentiment index on Friday, offering additional insights into consumer outlooks in a period of heightened economic uncertainty.
Earnings calendar slows
While fewer major corporate earnings are expected this week, notable releases include Oracle (ORCL) and BioNTech (BNTX) on Monday, and Adobe (ADBE) on Wednesday.
Gold holds near record highs
Amid the market volatility, spot gold prices steadied near $2,912 an ounce after climbing nearly 2% last week. Bullion has rallied strongly in the first quarter of 2025, benefiting from investor anxiety tied to trade instability, persistent central bank buying, and expectations of possible rate cuts by the Federal Reserve.
The Trump administration’s aggressive tariff policies and a renewed push for federal job cuts have further contributed to economic uncertainty, driving investors toward safe-haven assets like gold.
In contrast, Chinese economic data released over the weekend pointed to ongoing deflationary pressures, adding to global concerns about uneven recovery and monetary divergence.
As markets enter the second full trading week of March, all eyes remain on inflation figures and signals from the Fed amid rising volatility and political unpredictability.