Futures for major stock indices, including the Dow Jones Industrial Average, saw a decline on Monday as Wall Street digested President Trump’s recent tariff announcements. Both Nvidia and Tesla experienced pullbacks following previous gains.
Before the market opened, Dow futures dropped approximately 0.7%, equating to a decline of about 270 points. Similarly, S&P 500 futures fell by 0.9%, while the tech-heavy Nasdaq 100 futures faced a 1.1% decrease.
In bond markets, the yield on the 10-year Treasury note slipped to 4.3%. Oil prices also retreated, with West Texas Intermediate futures hovering around $57.40 per barrel.
Within the exchange-traded funds, the Invesco QQQ Trust fell by 1%, while the SPDR S&P 500 ETF saw a 0.8% drop. Tesla’s stock dipped by 0.9% in the early hours, encountering significant resistance at its long-term 200-day moving average. The electric vehicle company, led by CEO Elon Musk, remains about 41% below its all-time high of 488.54, set back in December.
Nvidia shares decreased by 1.4% in pre-market trading, continuing to test resistance around the 50-day moving average—indicating an important technical point for traders to watch.
The backdrop for these market movements includes President Trump’s announcement on Truth Social about imposing a 100% tariff on foreign-made films, citing national security concerns. As a result, shares of streaming giants like Netflix and Disney fell nearly 6% and over 3% respectively in pre-market activity. Trump also hinted at the possibility of reducing tariffs on China in the future while expressing ongoing concerns about trade practices.
This week, investors are keenly awaiting the Federal Reserve’s meeting and subsequent updates, particularly focusing on Chairman Jerome Powell’s insights into the impact of tariffs on inflation. Earnings reports from notable companies such as Palantir Technologies, Disney, and Vertex Pharmaceuticals are also on the horizon, promising potential market movement.
In broader market trends, the Dow had recently seen an impressive performance, climbing 1.4% or 564 points on Friday and extending its winning streak to nine sessions. Since the current volatility can create opportunities and uncertainty, it’s vital for investors to stay informed and strategize accordingly.
Noteworthy stocks to monitor as part of this evolving landscape include DoorDash, MercadoLibre, Penumbra, and Guidewire. Additionally, amidst significant fluctuations, Boeing is approaching a double-bottom buy point of 184.40. On the tech front, stocks like Apple, Amazon, and Microsoft are also exhibiting notable activity.
Given the swift changes in market dynamics, investors should sharpen their strategies and research diligently to identify which opportunities align best with their objectives in this unpredictable environment.
