U.S. stock futures climbed early Monday after a bruising week on Wall Street, as investors weighed the impact of President Trump’s sweeping new tariffs and a disappointing July jobs report.
Futures rebound after worst week in months
- Dow Jones futures rose 230 points, or 0.53%.
- S&P 500 futures gained 0.55%.
- Nasdaq 100 futures added 0.62%.
The move comes after all three major indexes posted significant weekly declines:
- Dow: -2.9% (worst week since April)
- S&P 500: -2.4%
- Nasdaq Composite: -2.2%
What triggered last week’s sell-off?
Two major catalysts drove Friday’s sharp declines:
- Trump Tariffs: The president signed an executive order slapping higher tariffs on dozens of trading partners, including Canada (35%) and the EU (15%).
- Jobs Report Miss: The U.S. added just 73,000 jobs in July, well below forecasts. May and June data were revised down by a combined 258,000 jobs. The unemployment rate rose to 4.2%.
Market reactions: Bonds, gold, and oil
- 10-year Treasury yield fell to 4.22% on Friday, as traders priced in a higher chance of a Fed rate cut.
- Gold surged to $3,412 per ounce, up 30% year-to-date.
- Oil was mixed Monday after OPEC+ announced a 547,000 barrel/day output hike for September. Brent crude hovered near $69.50.
Global markets respond to U.S. policy moves
- Asia-Pacific indexes mostly closed higher Monday, with South Korea’s Kospi up 0.91% and China’s CSI 300 gaining 0.39%.
- Japan’s Nikkei 225 dropped 1.25%, while Australia’s ASX 200 ended flat.
- European markets were rattled Friday but showed signs of stabilizing in early Monday trading.
What’s next for investors?
While futures pointed higher Monday, uncertainty remains high:
- Investors are watching closely for updates on potential trade talks ahead of the August 7 tariff rollout.
- The Federal Reserve’s next moves are under scrutiny, with futures markets showing 75% odds of a September rate cut.
Key takeaways
- U.S. futures rebounded early Monday after a rough week for equities.
- Economic uncertainty remains elevated due to weak jobs data and trade disruption.
- The Fed may face pressure to cut interest rates sooner than expected.
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