US stock futures head lower as tariffs get closer

by Sujata Rao and Margaryta Kirakosian

US stock futures retreated and gold extended its winning streak as the arrival of US tariffs loomed over markets. 

Contracts on the S&P 500 slipped 0.2% after a volatile day of trading on Monday. Europe’s Stoxx 600 Index gained 0.6%, with pharmaceutical stocks in the lead after JPMorgan Chase & Co. analysts said the impact of US tariffs on the sector would be “manageable.” 

Investors continued to snap up haven assets, sending gold to a new record high and knocking 10-year Treasury yields about three basis points lower.

Traders got further details on when Trump will announce his reciprocal tariff plan — 3pm on Wednesday at an event in the White House Rose Garden — but the extent of his levies remain unclear. The confusion around whether the US president will take a lenient or harder tack is making investors less willing to make risky stock bets and led Wall Street strategists to lower their estimates.

Goldman Sachs Group Inc. strategists cut their forecast for Europe’s Stoxx 600, following a similar move from the US team. The team led by Sharon Bell trimmed the 12-month target on the index to 570 points from 580, citing weaker growth forecasts.  

“Investors are grappling with what could be announced this week,” said Laura Cooper, global investment strategist at Nuveen. “The range of outcomes is so wide that traders are struggling with how to price in that potential outcome.”

The president has touted his April 2 announcement as a “Liberation Day,” heralding the start of a more protectionist policy meant as retribution against trading partners he has long accused of “ripping off” the US. 

Trump has already placed levies on Canada, Mexico and China — the US’s three largest trading partners — as well as automobiles, steel and aluminum. Import taxes on copper could come within several weeks. Trump has also threatened duties on pharmaceutical, semiconductor and lumber imports.

In Asia, Xiaomi Corp. shares dropped about 5% in Hong Kong. The technology giant confirmed one of its SU7 electric cars was involved in an accident. Local media reported three people died in the incident. 

Elsewhere, iron ore and base metals advanced as data showed China’s manufacturing activity at the highest in four months.  

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 0.6% as of 9:03 a.m. London time
• S&P 500 futures fell 0.2%
• Nasdaq 100 futures fell 0.2%
• Futures on the Dow Jones Industrial Average fell 0.1%
• The MSCI Asia Pacific Index rose 0.6%
• The MSCI Emerging Markets Index rose 0.6%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro fell 0.1% to $1.0804
• The Japanese yen rose 0.3% to 149.56 per dollar
• The offshore yuan fell 0.2% to 7.2792 per dollar
• The British pound was little changed at $1.2909

Cryptocurrencies

• Bitcoin rose 1.4% to $83,566.7
• Ether rose 2% to $1,856.5

Bonds

• The yield on 10-year Treasuries declined two basis points to 4.18%
• Germany’s 10-year yield declined five basis points to 2.68%
• Britain’s 10-year yield declined five basis points to 4.62%

Commodities

• Brent crude fell 0.4% to $74.47 a barrel
• Spot gold rose 0.2% to $3,130.10 an ounce

This story was produced with the assistance of Bloomberg Automation.

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