Investors Brace for Inflation Reports Amid Tariff Concerns
US stock futures declined on Monday as investors digested February’s jobs report and prepared for a data-heavy week focused on inflation. Market jitters persist as President Donald Trump’s evolving trade policies fuel uncertainty about economic growth and price pressures.
Futures Extend Declines After Weak Week on Wall Street
Futures tied to major indexes pointed to further losses:
- Dow Jones Industrial Average (YM=F) dropped 0.5%
- S&P 500 futures (ES=F) fell 0.5%
- Nasdaq futures (NQ=F) slid 0.6%
This follows last week’s steep declines, with all three indexes shedding over 2%—marking the worst performance since September.
Trade War Concerns Resurface
Investors remain wary as trade tensions escalate between the US, Mexico, and Canada. In a Fox News interview, Trump dismissed recession fears and defended his tariff-heavy economic stance, describing the US economy as being in “a period of transition.”
Adding to uncertainty, Canada’s incoming Prime Minister Mark Carney faces economic challenges worsened by continued US tariff threats.
Key Inflation Data to Drive Market Sentiment
Traders will closely watch this week’s economic releases:
- Monday: Federal Reserve’s consumer inflation expectations survey
- Wednesday: February Consumer Price Index (CPI)
- Thursday: Producer Price Index (PPI)
- Friday: University of Michigan’s consumer sentiment index
These reports will help shape expectations for inflation and potential Federal Reserve policy shifts.
Gold Steadies Near Record Highs
Amid market volatility, gold prices held near $2,912 an ounce after gaining nearly 2% last week. Safe-haven demand remains strong due to trade instability, central bank buying, and speculation about Fed rate cuts.
Conclusion: A Volatile Week Ahead
With inflation data in focus and trade uncertainties mounting, markets are bracing for heightened volatility. Investors will look to economic reports and Fed signals for direction in a politically unpredictable environment.
