Stock futures slide on more Trump tariff letters, but are off worst levels of session: Live updates

U.S. equity futures slid early Monday after President Donald Trump threatened high tariffs on more countries over the weekend, but were off the worst levels as investors bet those duties will eventually be negotiated down. Investors were also optimistic about second-quarter earnings season, which ramps up this week.

Futures for the Dow Jones Industrial Average fell 122 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures also dropped 0.3% each. Dow futures were down more than 200 points at one point overnight.

Investors continue to monitor ongoing updates on the tariff front, after Trump announced Saturday that the U.S. will impose 30% tariffs on the European Union and Mexico starting Aug. 1. Leaders of the EU and Mexico indicated they intend to keep talking with the Trump administration this month in an attempt to agree on a lower rate.

Trump’s announcement comes ahead of inflation readings this week, which will give investors a better sense of how the Trump tariffs already in effect are being felt throughout the economy.

Earnings season is also set to ramp up later in the week. Major banks, including JPMorgan Chase, will deliver quarterly reports starting Tuesday.

“The big question for markets in the coming weeks is if earnings, which are expected to be solid, can overshadow the tariff issues that are still there in the background,” said Glen Smith, chief investment officer of Texas-based GDS Wealth Management. “So far, the market has been able to withstand tariff headlines and is more focused on earnings and economic resiliency.”

Another potential factor for investors to monitor is the rift between the Trump administration and the Federal Reserve. On Sunday, National Economic Council Director Kevin Hassett told ABC News that President Trump can fire Fed Chair Jerome Powell “if there’s cause.”

Trump officials are probing the costs of renovation of the Federal Reserve’s main building in Washington, D.C., while the president has repeatedly criticized Powell for not lowering interest rates. The central bank has pushed back against some of the criticisms of the renovation project.

Monday’s move in futures comes after a negative week for stocks, although the major averages are still near record highs. The S&P 500 dipped 0.3% last week, its first negative week in three. The Dow fell 1%, breaking a three-week win streak. Meanwhile, the Nasdaq Composite inched down 0.1%, snapping a three-week winning streak.