Investing.com-- U.S. stock index futures fell on Monday evening after a negative session on Wall Street as a slew of trade tariff threats from President Donald Trump ramped up uncertainty over their economic impact.
Markets took limited relief from Trump extending his deadline for the imposition of the tariffs to August 1 from July 9, given that the president released his first batch of letters outlining tariff levels against several major economies.
S&P 500 Futures fell 0.2% to 6,265.25 points, while Nasdaq 100 Futures fell 0.1% to 22,860.50 points by 19:16 ET (23:16 GMT). Dow Jones Futures fell 0.2% to 44,571.0 points.
Trump begins releasing tariff letters
Trump on Monday released letters outlining higher trade tariffs against a slew of Asian and African countries. He imposed a 25% levy on South Korea, Japan, Malaysia, and Kazakhstan, a 30% levy on South Africa, a 32% levy on Indonesia, a 35% levy on Bangladesh, and a 36% levy on Thailand.
While Trump did extend the deadline for the imposition of the tariffs to August 1, investors grew wary over their potential impact, given that the tariff costs will be likely borne by American importers.
Analysts and the Federal Reserve have warned that Trump’s tariffs stand to underpin U.S. inflation in the coming months, especially if they are imposed at current levels.
Still, the White House was seen leaving the door open for more trade negotiations with the targeted countries. Treasury Secretary Scott Bessent said he expected to announce more trade deals in the coming days.
Trump is also set to release more letters outlining his trade tariffs on individual countries this week.
Wall Street rattled by tariff jitters, Tesla slides on Musk’s political actions
Wall Street indexes tumbled from record highs on Monday, with heightened risk aversion also spurring sharp losses in technology stocks as investors locked in recent profits.
The S&P 500 fell 0.8% to 6,229.98 points, while the NASDAQ Composite fell 0.9% to 20,412.52 points. The Dow Jones Industrial Average fell 0.9% to 44,406.36 points.
The S&P and the Nasdaq had hit record highs last week.
Tesla Inc (NASDAQ: TSLA ) was among the worst performers for the day, tumbling 6.8% and wiping out some $60 billion in market capital after CEO Elon Musk announced a foray into politics with the formation of an independent party. Analysts warned that such an endeavor would further distract Musk from his obligations at Tesla.
Still, Tesla rose 0.6% in aftermarket trade, seeing some respite.
Beyond tariffs, focus this week is on the minutes of Federal Reserve’s June meeting , which are due on Wednesday. The Fed has largely maintained its stance on keeping rates steady until the inflationary effects of Trump’s tariffs become more clear.