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Stock futures fell early Tuesday at the start of a new quarter as investors awaited key tariff developments that could determine how the rest of the year pans out.
Futures on the S&P 500 were down 0.4% down as were those on the Nasdaq 100. Dow Jones Industrial Average futures were falling 0.5%.
The market is bracing for so-called Liberation Day on Wednesday when President Donald Trump is expected to announce reciprocal tariffs on countries with trade imbalances with the U.S. However, The Wall Street Journal reported Sunday that White House officials were considering broader 20% levies on virtually all U.S. trading partners.
It won’t be long until we know for sure–Treasury Secretary Scott Bessent said Trump will announce the new trade taxes at 3pm Eastern time on Wednesday.
Meantime, stocks may be left in limbo though investors will be looking for any clues about what’s to come.
“A big concern for investors is that the U.S. tariffs will be met by retaliatory moves, which in turn could lead to a further round of escalation as the U.S. seeks to respond,” Deutsche Bank strategist Jim Reid said Tuesday, noting that inflation expectations continued to rise Monday.
Those concerns, as well as uncertainty over Trump’s trade policy, led to a bad quarter for the stock market. Stocks did rally after an early selloff Monday, with the S&P 500 and Dow indexes eventually closing higher, but the gains still brought to an end a dismal first three months of the year.
The S&P 500 fell 4.6% in the quarter, snapping a five-quarter winning streak and posting its worst slump since the third quarter of 2022, according to Dow Jones Market Data. March was when the damage was done, though, as the index finished 5.8% down for the month.
The tech-heavy Nasdaq Composite had an even worse quarter, tumbling 10.4%, while the Dow fared much better and closed down just 1.3% for the first three months of the year.
It remains to be seen whether Liberation Day can free the stock market from its recent slump.
