US Stock Futures Slip on Trump's Tariff Announcement
US stock futures declined marginally as investors reacted to President Donald Trump's announcement of 25% tariffs on global steel and aluminum imports.
* S&P 500 (ES=F) futures fell 0.2%
* Dow futures (YM=F) dropped 0.1%
* Nasdaq futures (NQ=F) retreated 0.2%
Trump Implements 25% Tariffs on Steel and Aluminum Imports
On Monday night, Trump implemented 25% tariffs on all imported steel and aluminum. The tariffs will take effect on March 4th and apply to all countries, including Canada and Mexico, the US's top suppliers of these metals.
AI Spending Fears Weigh on Tech Giants
In the tech sector, fears over AI spending continue to erode investor confidence in the "Magnificent Seven." Amazon (AMZN), Google (GOOG), Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), and Tesla (TSLA) have all experienced losses due to weak earnings in recent weeks. Meta (META) remains the sole member of the group to report double-digit gains this year. Meta also drew attention on Monday as it commenced layoffs in line with CEO Mark Zuckerberg's pledge to trim thousands of jobs to acquire AI talent. Approximately 3,600 employees, or 5% of the workforce, are expected to be laid off.
Coffee Futures Surge to Record High
In commodities, coffee futures climbed 6% to an all-time high of over $4.30 per pound. Panic-buying concerns have driven up bean prices, with low yields and high demand contributing to a 35% price increase this year. Brazil and Vietnam, the leading international suppliers, are not projected to increase production until 2026.
Coca-Cola Anticipates Earnings Growth
Coca-Cola's earnings on Tuesday are expected to reveal quarterly growth in the company's rivalry with PepsiCo. Wall Street predicts Q4 revenue of $10.67 billion and earnings per share of $0.52. Super Micro Computer (SMCI), Lyft (LYFT), and DoorDash (DASH) will also release earnings reports on Tuesday.
Gold Reaps Benefits of Stock Market Uncertainty
Gold (GC=F) continues to capitalize on uncertainty in the stock markets. President Trump's steel and aluminum tariffs have propelled the safe-haven asset to a second consecutive all-time high. Bullion reached a peak above $2,921 per ounce, extending gains from a 1.7% advance in the previous session.