US stock futures fell sharply early Monday as investors braced for another volatile week amid ongoing trade tensions and the start of earnings season for Big Tech companies. Dow Jones Industrial Average futures dropped 375 points, or about 0.9%, while S&P 500 futures were down 1% and Nasdaq-100 futures fell 1.1%. Last week, the major indexes posted significant losses, with the Dow and Nasdaq each shedding roughly 2.6% and the S&P 500 falling 1.5% in a holiday-shortened trading week.
All three indexes have now declined over 5% since President Donald Trump’s April 2 tariff announcement. Investors are closely watching developments in the escalating trade battle between the US and China. Headlines and shifting narratives have driven substantial market swings in recent weeks, from initial tariff announcements to subsequent walk-backs and retaliatory measures.
This week, the spotlight turns to earnings reports from two of the “Magnificent 7” tech giants: Tesla and Alphabet. Both stocks have been hit hard this year, with Alphabet down nearly 20% and Tesla plummeting 40%, reflecting a broader shift away from the high-flying tech trade of recent years. On the economic data front, key reports on the housing market and consumer sentiment are expected later in the week, though the schedule is relatively quiet compared to previous weeks.
In other market news, gold prices surged to a record high above $3,407 an ounce, driven by a weakening US dollar, ongoing trade concerns, and critical comments about the Federal Reserve from President Trump.
Trade tensions impact US stock futures
The dollar’s decline also prompted a rebound in Bitcoin and increased demand for safe-haven assets.
Tesla shares climbed 3% in premarket trading after the company issued a positive annual revenue forecast, easing concerns about its ability to weather an economic slowdown and tariff-related challenges. However, the stock remains down 37% year-to-date. Conversely, Netflix received price target hikes from multiple analysts following a better-than-expected earnings report, sending its stock up 3.3% in premarket trading and 10% year-to-date.
Analysts are growing more cautious about the market’s prospects. Morgan Stanley’s Michael Wilson revised earnings estimates downward, anticipating a severe economic slowdown. Expectations for first-quarter S&P 500 earnings growth have dropped from 11.4% at the start of the year to just 6.9%.
Geopolitical tensions are also in focus, with Japan’s Prime Minister Shigeru Ishiba asserting that the country will not bow to US demands in ongoing tariff negotiations. Meanwhile, South Korea’s acting President Han Duck-soo expressed hope that upcoming trade talks with the US could mark the start of meaningful cooperation, despite the likelihood of difficult negotiations ahead. As the trading day approaches, US stock futures continue to signal a lower open, with the Dow futures down 355 points and the S&P 500 and Nasdaq futures facing similar downward pressure.
Investors are bracing for another week of potential volatility as they navigate the complex interplay of trade disputes, earnings reports, and shifting market sentiment.
