Wall Street Wobbles as Trump Stands Firm on Tariff Hikes

Stock Market Today: U.S. Futures Slip as Trump Pushes Forward with Tariff Hikes

Wall Street is set to open lower Monday morning after President Donald Trump reaffirmed his commitment to increasing tariffs, despite growing concerns about their economic impact.

Markets React to Tariff Uncertainty

• S&P 500 Futures: Down 0.1%
• Dow Jones Futures: Down 0.3%
• Nasdaq Futures: Unchanged

Trump, speaking to reporters aboard Air Force One, made it clear that he has no plans to reverse the tariff hikes scheduled for April 2.

“April 2 is a liberating day for our country,” Trump said. “We’re getting back some of the wealth that very, very foolish presidents gave away because they had no clue what they were doing.”

The new tariffs will target autos, steel, and aluminum, adding pressure to industries already grappling with economic uncertainty.

Retail Sales Report and Consumer Confidence

Later today, the government will release its retail sales report, offering insight into consumer spending habits.

• January retail sales saw the biggest monthly decline in a year, shocking analysts and signaling potential trouble ahead.
• Fast-fashion giant Forever 21 filed for bankruptcy over the weekend, marking its second financial collapse.
• Consumers and businesses continue to report declining confidence amid ongoing tariff uncertainties and policy shifts.

Federal Reserve Faces a Tough Decision

The Federal Reserve is set to meet this week to discuss interest rates, but ongoing economic turbulence has made its job more difficult.

• Inflation showed improvement last month but remains high, with tariffs potentially pushing it even higher.
• Government spending cuts and job losses have eroded consumer and business confidence.
• The Fed is expected to keep interest rates unchanged, but future decisions could become more complicated if unemployment rises.

Global Markets Respond

Despite U.S. market struggles, European and Asian markets showed mixed reactions to the economic outlook.

Europe:

• Germany’s DAX: Up 0.3%
• France’s CAC 40: Up 0.3%
• UK’s FTSE 100: Up 0.1%

Asia:

• China’s Industrial Output: Grew nearly 6% in the first two months of the year.
• Retail Sales in China: Increased 4%, but the property market continues to decline.
• Hong Kong’s Hang Seng: Up 0.8% to 21,144.86
• Shanghai Composite: Up 0.2% to 3,426.13
• Tokyo’s Nikkei 225: Up 0.9% to 37,396.52
• Seoul’s Kospi: Up 1.7% to 2,610.69
• Australia’s S&P/ASX 200: Up 0.8% to 7,854.10
• Taiwan’s Taiex: Up 0.7%
• Bangkok’s SET: Up slightly less than 0.1%

Looking Ahead

As April 2 approaches, all eyes will be on how the market reacts to the next round of tariffs and whether the Federal Reserve adjusts its strategy in response to economic shifts. Investors will also closely monitor consumer sentiment and corporate earnings reports in the coming weeks.