US Stock Futures Drop as Investors React to Trump's Tariffs
US stock futures edged lower on Tuesday as investors processed President Donald Trump's announcement of tariffs on steel and aluminum imports.
* S&P 500 futures (ES=F): -0.2%
* Dow futures (YM=F): -0.1%
* Nasdaq futures (NQ=F): -0.2%
Trump imposed 25% tariffs on all steel and aluminum imports on Monday, effective March 4th. The tariffs apply to all countries, including Canada and Mexico, the top suppliers of metals to the US.
Tech Sector Concerns Drag on Sentiment
In tech, fears of excessive AI spending continue to dampen investor sentiment. The "Magnificent Seven" companies—Amazon (AMZN), Google (GOOG), Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), and Tesla (TSLA)—have faced headwinds from weak earnings. Meta (META) remains an outlier with double-digit gains this year.
Meta announced layoffs on Monday as part of CEO Mark Zuckerberg's plan to cut jobs and focus on AI talent acquisition. About 3,600 employees (5% of the workforce) are expected to be impacted.
Commodities Surge
Coffee futures surged 6% to a record high of $4.30 per pound. Panic-buying and supply-chain issues have fueled a 35% price increase in 2025. Brazil and Vietnam, key suppliers, are projected to lag in output expansion until 2026.
Earnings on the Horizon
* Tuesday: Coca-Cola, Super Micro Computer (SMCI), Lyft (LYFT), DoorDash (DASH)