U.S. markets are poised for a weak start Tuesday, with futures pointing lower as investors digest a fresh wave of tariff-related uncertainty.
The pressure comes after the U.S. Court of Appeals for the Federal Circuit declared that the bulk of tariffs imposed under former President Donald Trump were unlawful. In a 7-4 decision, the court said the Constitution grants taxing power — including tariffs — exclusively to Congress.
Implementation of the ruling was postponed until October, leaving time for the administration to take its case to the Supreme Court.
“All tariffs are still in effect!” Trump emphasized on Truth Social. “If these tariffs ever went away, it would a total disaster for our country.”
Bond yields jumped after the ruling, reflecting concern that Washington might ultimately be forced to return billions already collected from the levies.
Stocks had already stumbled Friday after a multi-session advance. The Nasdaq Composite bore the brunt, tumbling 249.61 points, or 1.2%, to close at 21,455.55. The S&P 500 slipped 41.60 points, or 0.6%, to 6,460.26, while the Dow Jones Industrial Average edged down 92.02 points, or 0.2%, to 45,544.88.
For the week, all three benchmarks closed modestly lower, with analysts pointing to profit-taking following a run of record-setting gains.
Still, the broader uptrend remains intact, with the S&P 500 notching a fresh closing high just one session earlier.
Economic indicators provided little surprise. The Commerce Department confirmed its PCE price index climbed 0.2% in July after a 0.3% gain in June, leaving the annual pace at 2.6%. Core PCE rose 0.3% month-over-month, with the yearly rate ticking up to 2.9% from 2.8%.
The data reinforced expectations for the Federal Reserve to cut rates in September, with futures implying an 87.1% chance of a quarter-point move.
In Washington, attention also turned to a court battle over Trump’s attempt to remove Federal Reserve Governor Lisa Cook. A District Court hearing on her request to block the move ended without a ruling from Judge Jia M. Cobb.
On the sector front, semiconductors and hardware led the declines Friday. The Philadelphia Semiconductor Index sank 3.2%, while the NYSE Arca Computer Hardware Index lost 2.0%. Dell Technologies (NYSE:DELL) slid nearly 9% after strong Q2 results were overshadowed by weak guidance.
By contrast, gold stocks rallied, tracking gains in the metal itself. The NYSE Arca Gold Bugs Index advanced 3.3%, underscoring safe-haven demand amid heightened policy uncertainty.
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