(Reuters) – Stock index futures in the U.S. edged up on Monday, as anticipation builds ahead of a pivotal deadline concerning tariffs on major trade partners and a week filled with important economic data that could shed light on the condition of the world’s largest economy.
At 05:50 a.m. ET, Dow e-minis saw a rise of 101 points, or 0.23%, U.S. S&P 500 E-minis were up by 19 points, or 0.31%, and Nasdaq 100 E-minis climbed 89 points, or 0.43%. Recent reports indicating weakening consumer demand have sparked concerns about a potential slowdown as markets brace for higher inflation following the full implementation of the Trump administration’s tariff measures.
In February, Wall Street’s three main indexes registered their first monthly decline of 2025, with the Nasdaq teetering close to a 10% drop from its peak. The expectation of persistent inflation has led the Federal Reserve to maintain interest rates since December, but this week’s economic data, particularly Friday’s non-farm payrolls report, could alter their stance.
Investor attention will be drawn to the Institute for Supply Management’s (ISM) survey scheduled for release at 10 a.m. ET. Economists surveyed by Reuters predict that manufacturing activity will remain in expansion territory at 50.8. The week also includes data on services activity and at least three employment reports.
Market participants have increased their expectations of a monetary policy easing cycle by the Fed in 2025, with futures indicating at least two 25-basis point interest rate cuts by December, according to data compiled by LSEG. St. Louis Fed President Alberto Musalem, a voting member of the Federal Open Market Committee, is set to speak later in the day, while Fed Chair Jerome Powell’s remarks are expected on Friday.
Amid uncertainty surrounding tariffs, ahead of Tuesday’s deadline set by Trump, which will end the one-month pause on the 25% tariffs imposed on imports from Canada and Mexico, there are indications that the President might soften the impact on the North American economies if they agree to impose duties on Chinese goods as well. Additionally, Trump has threatened to impose an additional 10% tariff on imports from China starting Tuesday, to which Beijing is likely to respond with counter-measures targeting U.S. agricultural imports.
Shares of U.S.-listed Chinese companies like Nio fell 3.6%, while JD.com dropped 2.3% in premarket trading. However, analysts suggest that April 1 could reveal the full extent of the new administration’s trade policy.
Crypto stocks like Microstrategy surged 12.3%, and Coinbase rose 9.4%, tracking the 9.8% spike in bitcoin following Trump’s announcement of a proposed reserve of digital assets, ahead of the White House Crypto Summit on Friday. Defense stocks such as RTX
