U.S. Stock Futures Edge Lower as Traders Worry Over Fed Cuts and Tariff Uncertainty
U.S. stock futures slipped in light holiday trading as investors stayed cautious about two big issues—possible Federal Reserve rate cuts and fresh uncertainty over U.S. tariffs.
By early Monday, S&P 500 futures dipped 0.1% to 6,467, Nasdaq 100 futures fell 0.1% to 23,437, and Dow futures slipped 0.1% to 45,559. The move shows that traders are holding back until they get a clearer signal from the Fed and Washington.
The drop comes just after a U.S. Appeals Court ruled that most of former President Donald Trump’s global tariffs were illegal, saying he had exceeded his authority. While this could ease some global trade tensions, it also opens the door for more political and legal battles if the case moves further.
On the monetary side, markets are betting on a 25 basis point Fed rate cut in September, but officials remain cautious. Traders are waiting for fresh U.S. labor and inflation data later this week before making bigger moves.
Globally, sentiment is fragile. Asian markets opened weaker, and tech stocks also showed signs of fatigue. The mix of tariff drama and Fed uncertainty has left markets in a wait-and-see mode.
For now, investors are playing it safe, keeping risk appetite in check until the next big signal from the Fed or Washington.
Impact:
Rate cut expectations and tariff uncertainty could weigh on the U.S. dollar, giving safe-haven currencies like the yen and Swiss franc short-term strength.
