U.S. stock futures kicked off the week in the red as investors braced for the return of high-stakes tariffs, with a critical deadline fast approaching.
President Donald Trump’s 90-day pause on trade duties is set to expire this Wednesday, and the administration is signaling that its patience is running out. While markets had hoped for a lengthy extension, officials indicated on Sunday that trading partners have only a few more weeks to secure deals. If they fail, the tariffs will snap back to their previous, market-rattling levels on August 1.
Treasury Secretary Scott Bessent warned that unless agreements are reached, rates will “boomerang back” to the levels seen on April 2—the same ones that sparked a sharp market downturn before Trump announced the 90-day negotiating pause.
Echoing the sentiment, Commerce Secretary Howard Lutnick confirmed the timeline, stating the tariffs will go into effect on August 1, adding that “the president is setting the rates and the deals right now.”
The market reaction was swift, with futures pointing to a lower opening on Wall Street:
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Dow Jones Industrial Average futures fell 120 points, or 0.27%.
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S&P 500 futures were down 0.41%.
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Nasdaq 100 futures declined by 0.50%.
While negative, this indicates a less severe start to the week compared to Friday, when futures saw steeper losses after President Trump threatened to begin sending letters setting tariffs as high as 70%.
Broader Market Snapshot
The cautious mood rippled across other markets:
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Bonds: The yield on the 10-year Treasury note edged down slightly to 4.33% as investors sought safety.
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Commodities: Gold slipped 0.53% to $3,325.20 an ounce. U.S. oil prices fell 1.72% to $65.85 per barrel after OPEC+ announced a larger-than-expected production increase for August.
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Currencies: The U.S. dollar dipped slightly against the euro and the yen.
Looking ahead, the economic calendar is relatively light, but all eyes will be on the release of the minutes from the Federal Reserve’s last policy meeting on Wednesday, which could provide further clues on the central bank’s thinking.
