US stock futures dropped early Monday as markets braced for another volatile week, driven by ongoing uncertainty surrounding President Trump’s evolving tariff policies and the start of earnings season for major technology firms.
Futures linked to the S&P 500 were down 0.8%, while those tied to the tech-heavy Nasdaq slipped 0.9%. Futures for the Dow Jones Industrial Average also declined by 0.7%.
According to Yahoo Finance’s Josh Schafer, markets remain highly reactive to tariff-related developments. Over recent weeks, shifting narratives—from Trump’s bold declarations to subsequent reversals—have triggered sharp market swings, underscoring investor sensitivity to trade rhetoric. The White House’s April 2 tariff announcement continues to weigh heavily on sentiment.
Last week, despite the shortened trading schedule, the S&P 500 dropped about 1.5%. The Nasdaq Composite and Dow both fell approximately 2.6%. Since the April 2 tariff event, all three major indexes have shed over 5%.
Meanwhile, earnings season is ramping up. Several major banks and consumer-facing companies have already reported first-quarter results, offering a glimpse into how businesses are preparing for the potential fallout from trade tensions. Notably, fewer companies are surpassing analyst expectations, and those that do are beating estimates by narrower margins than in previous quarters.
This week, investor focus turns to two members of the so-called “Magnificent Seven” tech giants: Tesla and Alphabet. Both are set to report earnings and serve as bellwethers for broader tech sentiment. Alphabet’s stock is down nearly 20% in 2025, while Tesla has plummeted 40%, reflecting a broader retreat from high-growth tech stocks.
On the economic front, the calendar is relatively light. Key data on the housing market and a consumer sentiment reading are expected later in the week, providing additional context for investor outlooks amid ongoing policy uncertainty.
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