U.S. equity futures were subdued at the start of the week, with investors bracing for a Federal Reserve rate decision and a heavy slate of corporate earnings. Markets are also digesting renewed tariff rhetoric from President Donald Trump and monitoring fallout from protests in Minneapolis. Meanwhile, gold pushed to another record high.
Futures muted
U.S. stock futures hovered just below flat on Monday as traders prepared for a packed agenda that includes the Fed’s policy decision and a wave of company results.
By 03:00 ET, Dow futures were flat, S&P 500 futures slipped 4 points, or 0.1%, and Nasdaq 100 futures fell 30 points, or 0.1%.
Wall Street finished Friday mixed, but all three major benchmarks — the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite — ended the week lower.
Sentiment was dented late last week by a downbeat outlook from chipmaker Intel (NASDAQ:INTC), which counts AI bellwether Nvidia (NASDAQ:NVDA) and the U.S. government among its backers. Investors continue to debate whether AI-linked firms can translate heavy investment in the technology into tangible financial gains.
That said, there were tentative signs that geopolitical pressures — a key drag on equities last week — might be easing. Traders also weighed data suggesting the U.S. economy remains resilient, albeit with growth concentrated among higher-income households and corporations.
Fed decision approaches as Powell succession speculation grows
Focus now turns to the Federal Reserve’s two-day policy meeting, which concludes with an interest-rate announcement on Wednesday.
The Fed is widely expected to keep rates unchanged in a 3.5%–3.75% range after a series of cuts late last year aimed at supporting a cooling labor market. Despite repeated calls from President Trump for aggressive easing, analysts cite solid growth, low unemployment and elevated equity markets as reasons for a pause.
Attention is also on Trump’s increasingly public feud with Fed Chair Jerome Powell, which has raised concerns about political pressure on the central bank. Earlier this month, Powell said the Justice Department had opened a criminal investigation into him — a move he described as politically motivated.
Powell is due to step down as Fed chair in May, though it remains unclear whether he will stay on the rate-setting board. Trump has suggested he may already have a preferred successor, with prediction markets increasingly pointing to BlackRock executive Rick Rider ahead of former Fed Governor Kevin Warsh.
“The focus will be on President Trump’s imminent nomination for the new Fed Chair, the upcoming data, and whether that person can corral the rest of the committee into further cuts,” analysts at ING wrote.
Trump revives tariff threat against Canada
As one trade threat fades, another has emerged. Over the weekend, Trump warned he would impose a 100% tariff on Canada if Ottawa were to strike a trade agreement with China.
The president targeted Canadian Prime Minister Mark Carney, who recently visited China and argued at Davos that smaller countries must counter economic coercion by global powers. Trump warned on social media that such a deal would severely harm Canada.
“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump wrote, adding that “all Canadian goods and products coming into the U.S.A.” would face a 100% levy if an agreement is reached.
Carney responded that Canada has “no intention” of pursuing a free trade deal with China, stressing that Ottawa would honor its commitments under the existing pact with the U.S. and Mexico.
“[W]e don’t think investors need to spend a lot of time worrying about Trump’s 100% Canada tariff actually coming to fruition, but the fact he continues to impetuously make these threats is gradually undermining sentiment,” analysts at Vital Knowledge said.
Shutdown risks resurface after Minneapolis unrest
Concerns about a renewed U.S. government shutdown have resurfaced following another fatal incident in Minneapolis, where protesters clashed with federal immigration authorities.
According to the Wall Street Journal, many Democratic senators who had previously sought to avoid a shutdown after last year’s record 43-day closure are now taking a tougher stance. The shift follows the shooting of a man in Minneapolis by a U.S. Border Patrol officer.
Several Democrats have indicated they will oppose funding for agencies overseeing U.S. Border Patrol and Immigration and Customs Enforcement, calling for greater oversight of enforcement tactics. Republicans hold a slim Senate majority, but not enough to pass most legislation without some Democratic support.
Gold’s rally extends
Gold surged past $5,100 an ounce on Monday, extending last week’s sharp rally as investors flocked to the safe-haven asset amid geopolitical uncertainty.
Bullion climbed more than 8% last week, repeatedly setting new records, and is up nearly 17% year to date. The move has been driven by geopolitical risk, expectations of looser U.S. monetary policy later in 2026, and sustained central-bank buying.
Other precious metals, including silver and platinum, also rose to fresh all-time highs.