U.S. Stock Futures Dip on Tariffs; Tech Fears, Coffee Soars, Gold Hits Record
U.S. Stock Market
US stock futures edged lower as investors processed President Donald Trump's announcement of 25% tariffs on global steel and aluminum imports. Futures linked to the S&P 500 (ES=F) slipped 0.2%, while Dow futures (YM=F) fell 0.1%, and Nasdaq futures (NQ=F) declined 0.2%.
Tech Sector
In the tech sector, concerns over AI spending continued to erode investor confidence in the "Magnificent Seven" companies (Amazon, Google, Apple, Nvidia, Microsoft, Tesla). All have experienced losses due to weak earnings in recent weeks, except for Meta, which remains the group's only double-digit gainer this year. Meta also made headlines for initiating layoffs in line with CEO Mark Zuckerberg's pledge to cut jobs amid a push for AI talent. An estimated 3,600 employees (5% of the company) are expected to be affected.
Commodities
Coffee futures surged 6% to an all-time high of over $4.30 per pound. Panic-buying, low yield, and high demand have contributed to a 35% price increase this year. Brazil and Vietnam, major international suppliers, are not expected to increase output until 2026.
Gold
Gold (GC=F) continued to benefit from market uncertainty. President Trump's tariffs have pushed the safe-haven asset to a second consecutive all-time high. Bullion touched a peak above $2,921 per ounce, extending its gains from a 1.7% jump in the previous session.
Earnings Reports
On Tuesday, Coca-Cola, Super Micro Computer (SMCI), Lyft (LYFT), and DoorDash (DASH) are scheduled to release earnings reports.