Stock Futures Rise as Investors Prepare for Economic Data and Tariff Announcement

Stock futures saw modest gains early on Monday, as investors looked ahead to a week filled with significant economic reports and the potential announcement of new tariffs by President Donald Trump.

Futures linked to major indices showed positive movement, with Dow Jones Industrial Average futures rising by 63 points (0.14%), S&P 500 futures up by 0.32%, and Nasdaq 100 futures gaining 0.54%.

Ahead of the data-heavy week, President Trump hinted at the possibility of unveiling a new round of tariffs. According to a Bloomberg report, Trump is expected to announce a blanket 25% tariff on steel and aluminum imports, though he did not specify when these would be implemented. Additionally, he indicated that retaliatory tariffs might be imposed on countries taxing US imports. These potential tariff measures come on the heels of previously announced duties on Chinese goods that were set to go into effect Sunday night.

The tariff news has added to the market’s uncertainty, with analysts warning that such measures could further contribute to inflation concerns and slow down business activity. Lydia Boussour, a senior economist at EY-Parthenon, noted that steep tariffs and heightened policy uncertainty might lead businesses to adopt a more cautious stance, impacting hiring and potentially slowing economic growth.

In addition to concerns over tariffs, investors are also focused on key economic reports scheduled for release this week. The January consumer price index (CPI) report will be released on Wednesday, followed by the producer price index (PPI) and weekly jobless claims data on Thursday. Federal Reserve Chairman Jerome Powell will also address Congress on Monday, providing further insights into the Fed’s stance on economic conditions.

Despite the potential risks, some market observers are viewing the tariff threats as a bargaining tactic and expect limited negative impact on the broader market. Investors are also closely watching upcoming corporate earnings reports, including results from companies such as McDonald’s on Monday and Coca-Cola on Tuesday, which could provide additional insights into the economic landscape.

With input from CNBC and Bloomberg.