U.S. stock futures fell this morning as investors remained cautious over escalating trade tensions and upcoming economic reports. Concerns over U.S. trade policy dominated market sentiment as President Donald Trump threatened to impose new tariffs on several countries. This comes after Trump stated that he would soon send out letters to countries, outlining his tariff plans.
The threat of tariffs and rising geopolitical tensions weighed heavily on investors. News of a potential military operation in Iran and the evacuation of U.S. embassy staff from Iraq further heightened concerns. These global developments added to the overall unease in the markets.
Yesterday, U.S. stock futures dropped amid trade tensions and economic data as Wall Street’s major indices closed lower. Tech stocks like Amazon and Apple retreated, and U.S. steel stocks also took a hit. Progress on a trade deal with Mexico led to falling stock prices for Cleveland-Cliffs and Nucor. Conversely, Warner Bros. Discovery saw a rise, gaining over 5% after announcing potential bond repurchases.
Another key factor influencing the market was the latest consumer price data. The U.S. Bureau of Labor Statistics reported a smaller-than-expected rise in consumer prices for May. While the annual inflation rate rose to 2.4%, it was lower than forecasted. The core consumer price index, which excludes volatile food and energy costs, showed a 0.1% increase in May, missing expectations.
Investors also look to the Producer Price Index (PPI) data, which will be released shortly. Analysts predict the PPI for May will increase by 0.2% month-over-month and 2.6% year-over-year. The PPI, along with the U.S. Initial Jobless Claims report, could offer further insights into inflationary pressures and employment trends.
In the bond market, the yield on the 10-year U.S. Treasury note stood at 4.4%, down slightly. Meanwhile, the Euro Stoxx 50 Index dropped over 1% this morning, reflecting similar concerns in Europe. The European Union remains in a delicate position regarding trade with the U.S., especially as President Trump pushes for unilateral tariffs.
Looking ahead, investors will closely monitor global developments. Analysts expect that trade relations between the U.S. and China will remain a major focus. As economic data continues to roll in, market volatility may increase, keeping investors on edge.
For more business updates, visit DC Brief.
