A trader works on the floor of the New York Stock Exchange on Aug. 4, 2022.
Source: NYSE
Stock futures edged up in overnight trading Sunday amid continued uncertainty surrounding President Donald Trump’s plans to impose tariffs on key U.S. trading partners this week.
Futures on the Dow Jones Industrial Average gained 77 points. S&P 500 futures ticked up 0.2% and Nasdaq 100 futures gained 0.6%.
Commerce Secretary Howard Lutnick said Sunday on Fox News that the exact tariff that will be levied against Mexico and Canada starting Tuesday is still “fluid,” which means it could be lower than the proposed 25%. He added that the additional 10% duty on China imports is “set.”
Treasury Secretary Scott Bessent said on CBS that Mexico has offered to match the U.S. tariffs on China, potentially as a way to get out of the tariffs set to be imposed against them on Tuesday.
Legendary investor Warren Buffett made a rare comment on tariffs over the weekend, saying punitive duties could trigger inflation and hurt consumers.
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” said the Berkshire Hathaway CEO and chair. “Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!”
The uncertainty around Trump’s trade policy stirred up market volatility recently as all three major averages suffered a negative month. The S&P 500 declined 1.4% in February, while the 30-stock Dow dropped 1.6%. The tech-heavy Nasdaq Composite was the underperformer with a 4% loss, marking its worst month since April 2024.
“Whether the stock market can survive this change remains to be seen. One way or another, tariffs will be a shock for the economy,” Chris Rupkey, chief economist at FWDBONDS, said in a note.
Elsewhere, cryptocurrencies rallied on Sunday after Trump announced the creation of a strategic crypto reserve for the U.S. that will include bitcoin and ether. Bitcoin jumped 10% to nearly $94,000 after dipping to a three-month low under $80,000 on Friday.
This action-packed week also includes the key February jobs report on Friday, which is expected to show that fewer jobs were created.