- Wall Street futures fall amid U.S. tariff uncertainty.
- Dollar drops against yen, euro and Swiss franc.
- Gold rises while oil prices decline before Iran talks.
- Nvidia earnings expected to test AI sector confidence.
Futures tied to American equities dipped early Monday across Asia, alongside a weaker greenback, as fresh doubts about upcoming tariff policies rattled market confidence. With hesitation growing among traders, attention turned toward Nvidia's imminent financial report - its outcome potentially shaping broader tech-sector mood. Uncertainty weighed heavily despite quiet trading volumes typical of the region.
Futures tied to the S&P 500 fell by 0.8%, while Nasdaq contracts dipped 1.0%, as investors waited on Nvidia's upcoming announcement. Since the firm makes up close to 8% of the broader index, its performance holds weight. Earnings are forecasted to rise sharply - by about 71% - reaching $7.76 per share, although projections differ widely between $6.28 and $9.68. Traders are positioning for volatility; price swings of no less than 6% appear likely once numbers come out.
Later into Thursday, European markets dipped lower. Contracts tied to the EUROSTOXX 50 and DAX each dropped half a percentage point; meanwhile, those linked to Britain's FTSE slipped somewhat less, according to figures from Reuters.
A shift toward caution emerged as uncertainty clouded U.S. trade plans, triggered when the Supreme Court invalidated President Donald Trump's emergency tariffs. In reaction, Trump declared a broad 10% import tax - soon increased to 15% - leaving questions about implementation, coverage, and exceptions unresolved. While markets digested the changes, conflicting signals on enforcement timelines deepened hesitation among investors.
Dollar Weakens Asia Mixed
Markets moved fast after news broke. As per Reuters, the dollar weakened by 0.4% versus the yen, settling at 154.40, while its value dropped 0.5% compared to the Swiss franc, reaching 0.7724. Meanwhile, the euro climbed 0.3%, hitting $1.1821.
"The tariff landscape is now more uncertain than before, uncertainty is not good news for any economy or market," said Rodrigo Catril, senior FX strategist at NAB. "Unless common sense prevails, we could be entering a circular process where new tariffs are announced, then potentially overturned, only for new tariffs to be announced, and we do the dance again."
Shares across Asia showed uneven movement. Outside Japan, the region's broader MSCI index advanced by 0.9%, according to Reuters, amid thin trading activity. While the Japanese market stayed shut due to a public holiday, its futures slipped 0.8% when measured against the prior day's closing level.
Not long ago, South Korea's main index kept rising - up half a percent following its latest record run. At the same time, Taiwan's market moved higher by 1.2%, reaching a level never seen before. According to Goldman Sachs analysts, current developments might reduce near-term U.S. import taxes on multiple Asian nations, especially China.
Treasuries, Commodities React
Fiscal shifts tied to tariffs stirred reactions across debt securities. As per Reuters, anxiety rippled through Treasuries as calculations suggested Washington may have to reissue about $170 billion in collected duties, with estimates indicating the budget gap might stretch by half a percent, nearing 6.6% of economic output.
Futures on 10-year notes rose slightly by four ticks despite a quiet Asian session, since Japanese markets observed a public break and physical Treasury trades paused. Equity declines likely supported the move upward.
Fresh signs of uneven economic performance in the U.S. have caught investor attention lately. Though growth slowed more than expected during the last quarter, underlying price pressures turned out stronger than predicted. According to Reuters, bets on a Federal Reserve interest rate reduction by June now stand near 52%. Just seven days prior, those odds were above 60%.
Fresh strength appeared in precious metals as investors favored protection. Rising by 1.1%, gold reached $5,159 per ounce, supported by ongoing caution across markets. Silver moved higher still, gaining 3.2% to hit $87.25, following close to an 8% jump seen just days earlier.
Easing followed expectations around nuclear discussions between the U.S. and Iran set for Geneva on Thursday. Brent futures fell by 1.3%, landing at $70.84 per barrel; meanwhile, American benchmark crude dropped the same percentage, settling at $65.61, data from Reuters showed. That dip unwound part of the prior week's climb sparked by fears of possible American military moves across the Middle East. From rising due to tension, prices now shift with diplomatic timing.
Falling alongside, Bitcoin dropped 4.3%, settling at $64,698 amid shrinking investor willingness to take risks. Clarity on trade rules now weighs heavily, while signals from big tech companies could shape where stocks and the U.S. currency head next.
FAQs
Why are Wall Street futures falling amid U.S. tariff turmoil?
Futures dropped after confusion over President Trump's shifting tariff plans revived uncertainty around U.S. trade policy. Investors are concerned that repeated changes could hurt growth and corporate earnings.
How is the dollar reacting to the tariff uncertainty?
The dollar slid against major currencies, falling about 0.4% against the yen and 0.5% versus the Swiss franc. Traders said policy uncertainty is weighing on confidence in U.S. assets.
Why is Nvidia's earnings report significant for markets?
Nvidia, which accounts for nearly 8% of the S&P 500, is expected to post a sharp rise in earnings. Given its heavy weight in indexes and the broader AI sector, results could trigger large market swings.
How are gold and oil prices responding to the latest developments?
Gold rose more than 1% as investors sought safe-haven assets amid market volatility. Oil prices fell over 1% ahead of U.S.-Iran nuclear talks and concerns about global demand.
Could tariff changes affect the U.S. fiscal outlook?
Analysts warn that if tariffs are reversed or revenue must be repaid, it could widen the fiscal deficit. That risk has added to volatility in bond and currency markets.
