Stock futures dropped Sunday evening as investors react to mounting concerns about the U.S. economic outlook and President Donald Trump‘s trade policies.
What Happened: Dow Jones Industrial Average futures fell 0.54% to 42,608.00, while S&P 500 futures declined 0.62% to 5,740.00. Nasdaq-100 futures showed the steepest drop, falling 0.80% to 20,068.25 as of 8:00 pm Sunday, according to data from Benzinga Pro.
The declines follow a difficult week for markets, with the S&P 500 falling 3.10%, the Nasdaq Composite dropping 3.45%, and the Dow losing 2.37%.
“The reverse Trump trade continues Sunday night,” economist Peter Schiff wrote on X. “U.S. stocks, the dollar, and Bitcoin BTC/USD are selling off, while foreign stocks and gold are rallying. I believe this will be a powerful trend that is long overdue.”
In a Fox News interview Sunday, Trump described the economy as going through “a period of transition” when asked about recession possibilities. Bond market signals have raised alarm bells, with investors moving into short-dated Treasuries amid anticipation the Federal Reserve may cut interest rates as early as May.
The White House recently rolled back some tariffs on Canada and Mexico, but uncertainty persists. Allianz Chief Economic Advisor Mohamed El-Erian suggested market reactions reflect companies valuing “predictability and clarity of policies” above all else.
Economist Justin Wolfers questioned the effectiveness of tariff policies on X Sunday, noting that while successful tariffs should boost American business and stock prices, “everytime he imposes tariffs, stocks fall. That’s the market rendering its judgment.”
Why It Matters: “Just a few weeks ago we were fielding questions about whether the U.S. economy’s re-accelerating — and now all of a sudden the R word is being brought up repeatedly,” said Gennadiy Goldberg of TD Securities.
Warren Buffett recently characterized tariffs as “an act of war” that function as a consumer tax, while economist Justin Wolfers noted on X, “Everytime he imposes tariffs, stocks fall. That’s the market rendering its judgment.”
Trump’s tariff policies remain a central concern. Former White House communications director Anthony Scaramucci warned in a Yahoo Finance interview, “I think he’s going to put us into a recession, frankly,” describing tariffs as disproportionately affecting lower-income consumers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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