Dow Jones futures slip as risk aversion rise on tariff, geopolitical tensions
- Dow Jones futures fall after Trump announced a 15% global tariff, prolonging post-Supreme Court trade uncertainty.
- US equities weaken as US-Iran tensions heighten risk aversion beyond trade concerns.
- Market caution rises as mixed data complicates the Federal Reserve’s policy outlook.
Dow Jones futures fall 0.43% to around 49,450 during European hours ahead of the US regular market open on Monday. S&P 500 and Nasdaq 100 futures decline 0.58% and 0.74%, respectively, trading near 6,880 and 24,880 at the time of writing.
US index futures eased on Monday as US President Donald Trump announced on Saturday a temporary 15% global tariff effective immediately, extending trade policy uncertainty following the Supreme Court’s decision to strike down key duties imposed under the International Emergency Economic Powers Act.
US equities also struggle amid rising risk aversion linked to lingering tensions between the US and Iran, which has also weighed on sentiment, contributing to equity underperformance beyond trade policy concerns.
Trump weighed limited airstrikes on Iran as a way to pressure Tehran during nuclear talks and reportedly told advisers that if diplomacy or an initial targeted US strike fails to compel Iran to abandon its nuclear program, a broader assault could be considered in the coming months, according to The New York Times.
On Friday’s regular US session, Wall Street ended higher with gains across major indexes after the Supreme Court of the United States blocked Trump’s emergency tariffs. The Dow Jones rose 0.47%, the S&P 500 gained 0.69%, and the Nasdaq 100 climbed 0.9%. Tech earnings remain in focus this week, particularly Nvidia’s results, which could offer fresh direction for the broader market.
The US Gross Domestic Product (GDP) expanded at an annual rate of 1.4% in the fourth quarter of 2025, while core PCE inflation rose 3.0% YoY in December, underscoring persistent price pressures and complicating the Federal Reserve’s policy outlook, thereby heightening market caution.
