U.S. stock futures experienced a modest dip after President Donald Trump revealed a 25% tariff on global steel and aluminum imports. S&P 500 futures saw a 0.2% decline, Dow futures edged down by 0.1%, and Nasdaq futures dropped 0.2%.
On Monday evening, Trump announced these tariffs, slated to start on March 4th. They encompass all countries, with no exceptions, affecting key suppliers like Canada and Mexico. Both nations are urgently trying to negotiate a deal to sidestep additional tariffs expected on March 1st.
In the tech sector, concerns over AI spending are dampening investor optimism in the “Magnificent Seven.” Major players like Amazon, Google, Apple, Nvidia, Microsoft, and Tesla have faced recent setbacks due to tepid earnings results. So far this year, Meta is the standout performer among them, achieving double-digit gains.
Meta also stirred interest on Wall Street Monday as it initiated workforce reductions. CEO Mark Zuckerberg is following through on his promise to trim thousands of jobs to enhance AI expertise. Overall, about 3,600 employees, representing 5% of the workforce, will be let go.
On the commodities front, coffee futures surged by 6%, reaching an unprecedented high of over $4.30 per pound. The price spike stems from a blend of lower yield and heightened demand, marking a 35% increase this year. Major producers, Brazil and Vietnam, are unlikely to boost their output until 2026.
Looking ahead, Coca-Cola is set to report earnings on Tuesday, with expectations of growth as it continues its rivalry with PepsiCo. Analysts forecast Q4 revenue to hit $10.67 billion, with earnings per share pegged at $0.52.
Earnings reports are also anticipated from Super Micro Computer, Lyft, and DoorDash on the same day.
Meanwhile, gold continues to shine as stock market uncertainty gives it a boost. With the imposition of Trump’s steel and aluminum tariffs, gold has soared back to its peak levels for the second week in a row.
Bullion climbed to an all-time high above $2,921 an ounce, building on a 1.7% gain from the previous session. Bloomberg offers the latest insights on this trend.
