U.S. stock futures pointed to a lackluster open Tuesday as investors stayed on the sidelines following a volatile start to the week. Uncertainty surrounding President Donald Trump’s latest trade actions and anticipation of key Federal Reserve minutes kept risk appetite in check.
Major index futures were largely unchanged ahead of the opening bell. The Dow and S&P 500 were flat, while Nasdaq 100 futures posted a modest 0.2% rise. The hesitant mood followed Monday’s sharp declines, as markets pulled back after a strong rally in prior sessions.
The renewed trade jitters stemmed from President Trump’s latest executive order and tariff warnings. Trump formally extended a temporary freeze on reciprocal tariffs through August 1, beyond the previous July 10 deadline, citing “additional information and recommendations from various senior officials.”
Despite the extension, Trump emphasized flexibility. “If they call up and they say something a different way, we’re going to be open to that,” he said, noting the August deadline was “not 100 percent firm.”
The order accompanied screenshots of letters Trump shared on Truth Social, threatening significantly higher import duties for at least 14 countries. These included a 25% tariff on goods from Japan, South Korea, Malaysia, and Kazakhstan; 30% on South Africa; and up to 40% on Laos and Myanmar.
“What’s troubling investors is Trump potentially moving the goalposts yet again,” said Dan Coatsworth, investment analyst at AJ Bell. “He has form in constantly coming up with new terms and conditions and has now threatened an extra 10% tariff on countries who align themselves with ‘anti-American policies’ of BRICS nations.”
“He also suggests some tariffs could reach up to 70%, greater than the previous maximum amount on the Liberation Day menu,” Coatsworth added. “Investors would much prefer one set of rules and for the Trump administration to stick to them.”
The volatile policy backdrop weighed heavily on Monday’s trading session. The Dow Jones Industrial Average closed down 422.17 points, or 0.9%, at 44,406.36. The Nasdaq fell 0.9% to 20,412.52, and the S&P 500 lost 0.8% to finish at 6,229.98.
Profit-taking after last week’s rally, fueled by stronger-than-expected jobs data, added to the pressure. Investors were also positioning cautiously ahead of this Wednesday’s release of the Fed’s June meeting minutes, which could provide more clarity on the path of interest rates.
The market is widely expecting the Fed to keep rates steady at its upcoming July 29–30 meeting. CME Group’s FedWatch Tool currently reflects a 95.3% probability of no rate change.
In sector action, hardware and energy names led the downturn. The NYSE Arca Computer Hardware Index dropped 2.2%, while the Philadelphia Oil Service Index fell 2.0%. Other weak spots included semiconductors, airlines, and steel. Gold stocks, however, posted modest gains amid growing global uncertainty.