Still betting on Nvidia? Our AI picked this stock instead; it’s up 96%+ THIS MONTH
Investing.com - U.S. stock futures decline, with markets searching for more clarity around the trajectory of President Donald Trump’s tariff agenda. Trump suggests that the U.S. is close to finalizing more deals with several trading partners and would send out letters to others outlining their new tariff rate by July 9 -- the long-awaited date of expiration of a delay to his punishing "reciprocal" levies. Elsewhere, Trump hits out at Elon Musk after the Tesla (NASDAQ:TSLA) CEO and former close advisor said he plans to start a new political party in the U.S.
1. Futures slip
U.S. stock futures pointed lower on Monday, as investors assessed Trump’s comments on a potential string of trade deals and the deadline for elevated levies to once again come into effect.
By 03:30 ET (07:30 GMT), the Dow futures contract had slipped by 149 points, or 0.3%, S&P 500 futures had declined by 31 points, or 0.5%, and Nasdaq 100 futures had dropped by 126 points, or 0.5%.
The main averages were closed on Friday for the Independence Day holiday.
Following rounds of heavy volatility in the first half, equities on Wall Street, particularly the S&P 500, are in the early days of what has historically been a strong period. July has been the best-performing month for the benchmark index over the last two decades, notching an average return of 2.5%, according to Reuters calculations.
Hopes have been high that the tariff-related tensions which roiled markets in the opening six months of 2025 have a more muted impact going forward, while the passing of a sprawling policy bill last week has helped to remove a major point of uncertainty for markets.
Still, the outlook for incoming economic data, especially inflation, remains murky and second-quarter corporate earnings due out in the coming weeks could still sway sentiment.
2. Trump on tariffs
Trump has said that the White House will begin to send out letters to U.S trading partners outlining their new tariff rates, although some confusion has surrounded when the levies would come into effect.
A pause to Trump’s heightened reciprocal tariffs is set to end on July 9, but media reports have suggested that rates may not kick in until August 1.
Asked about these dates by reporters, Trump said he thinks "we’ll have most countries done by July 9 [...] either a letter or a deal." Commerce Secretary Howard Lutnick, who was standing next to Trump, added that the tariffs "go into effect August 1, but the president is setting the rates and the deals right now."
Since the onset of the 90-day pause in April, the Trump administration has been carrying out talks over individualized trade agreements with a host of nations. The discussions have so far yielded preliminary deals with the United Kingdom (TADAWUL:4280) and Vietnam, as well as a trade truce with China.
"[F]or the rest, it is a question of whether last-minute deals are struck, whether tariffs are substantially increased or whether fresh extensions are announced. All seem possible," analysts at ING said in a note.
While many nations now seemingly have a three-week reprieve from additional duties that could rise from a baseline 10% to as high as 50%, Trump has mentioned that the rates could reach 60% or 70%. The statements may extend what has become a common source of worry for businesses in recent months: uncertainty.
3. Trump threatens extra levies on BRICS nations
Meanwhile, Trump has said that countries aligned with the BRICS bloc will face an extra levy over allegedly anti-American practices.
Trump has repeatedly criticized the bloc, which consists of founding members Brazil, Russia, India, China, and South Africa, over its efforts to develop new trade alternatives to the United States.
At the heart of these efforts was an attempt to create a BRICS currency which could serve as an alternative to the U.S. dollar, although the bloc recently signaled that it has no such plans.
BRICS added Egypt, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates as full members in 2024.
In a post on his social media platform, Trump said "any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy."
Trump’s comments come as a BRICS summit is taking place in Brazil, where the bloc condemned an increase in trade tariffs and also criticized Washington’s attacks on Iran.
4. Trump hits out at Musk over plans to form new political party
Trump also lashed out against former confidant Elon Musk over the latter’s plans to form a third political party in the U.S., furthering a bitter public feud between the two.
Musk, who was Trump’s largest financier during the 2024 elections but has repeatedly criticized the president’s sweeping fiscal bill, said earlier in the weekend that he planned to form a new political party, dubbed the America Party.
Trump said in a Truth Social post that he was “saddened to watch Elon Musk go completely ‘off the rails’,” while criticizing the Tesla CEO’s plans.
He also noted the scrapping of a proposed electric vehicle mandate in the recently-passed tax-cuts and spending package, saying it was unfortunate for Musk.
5. Oil choppy following OPEC+ output lift
Crude prices hovered around both sides of the flatline on Monday after OPEC+ announced plans to increase output more than expected in August, sparking concerns that the market will become oversupplied.
At 03:31 ET, Brent futures dropped 0.1% to $68.25 a barrel and U.S. West Texas Intermediate crude futures had inched up 0.1% to $66.56 a barrel.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, announced on Saturday that it will increase oil output by 548,000 barrels per day (bpd) in August.
The hike is larger than the 411,000 bpd increases already implemented for May, June, and July. The group also warned that it will consider another 548,000 bpd hike in September at the next meeting on August 3.
It marks a continued rollback of the voluntary 2.2 million bpd in cuts that major producers like Saudi Arabia and Russia had initiated earlier this year to support prices.