Dow Jones and S&P500: US Stocks Slip as Traders Brace for Tariff Rebalancing

S&P 500 Futures Dip as Trade Uncertainty Builds Ahead of Tariff Deadline

 

Stock futures slipped early Monday as traders recalibrated expectations around U.S. tariffs, which are now set to go into effect on August 1, not July 9 as many previously expected.

Dow futures edged lower by 70 points, or 0.2%, while S&P 500 futures dipped 0.3% and Nasdaq-100 futures fell 0.5%, pressured by new political noise and uncertainty around upcoming trade moves.

What Did Treasury Secretary Bessent Signal About Trade Announcements?

Treasury Secretary Scott Bessent said in back-to-back interviews that several trade announcements are coming “in the next 48 hours,” adding it will be a “busy couple of days” without specifying the countries involved. The market had been anticipating tariffs this week as Trump’s 90-day reprieve on reciprocal tariffs was set to expire.

Commerce Secretary Howard Lutnick confirmed the new effective date of August 1 while warning that trading partners unwilling to negotiate will revert to prior tariff levels.

Traders are cautious, balancing optimism over trade progress against Trump’s threat of an additional 10% tariff on countries aligned with “Anti-American BRICS policies.”

How Are Tesla, Geo Group, and SolarEdge Trading in Premarket?

Tesla shares dropped nearly 6% premarket after CEO Elon Musk announced plans to form the “America Party,” fueling concerns over further distraction from the core business and potential brand damage.

Geo Group and CoreCivic jumped 7.6% and 5.4%, respectively, after Trump’s July 4 bill expanded funding for immigration detention centers, lifting prospects for the private prison sector.

SolarEdge fell 2.8% after a sharp rally last week driven by tax changes in Trump’s bill, while Shell slid nearly 3% after flagging weaker gas trading will pressure quarterly earnings.

Will Earnings Season Support the Rally?

The S&P 500 and Nasdaq closed last week at all-time highs, boosted by hopes the White House would delay the harshest tariffs. However, with the market near record levels, traders are watching for increased volatility if trade negotiations stall or if tariffs turn out higher than anticipated.

Tom Lee of Fundstrat said last week that tariffs have “reshaped some economic flows” but sees potential upside if companies post stronger-than-expected earnings by managing tariffs effectively.

What Should Traders Watch This Week?

Traders will closely monitor upcoming trade headlines from the White House and Treasury while positioning ahead of earnings season.

Key focus will be on whether trade developments will reinforce or disrupt the recent rally, with expectations that the tariff timeline and any retaliatory measures could influence near-term equity sentiment.

The August 1 tariff deadline now serves as the next major pivot point for U.S. equities.

More Information in our Economic Calendar.