Market Jitters: Tariff Tensions Rattle S&P 500 and Nasdaq Futures
Futures tracking the S&P 500 and Nasdaq took a dip on Wednesday as U.S. tariff policies cast a shadow over corporate outlooks, spurring inflation concerns and weighing heavily on record-high markets.
U.S. semiconductor equipment manufacturers faced a downturn following ASML’s cautionary note that U.S. tariff uncertainty might hinder its growth aspirations for 2026. Consequently, shares of companies like Applied Materials and Lam Research decreased by 3%, while KLA Corp fell 2.8% and Teradyne slipped by 1%.
Investor attention pivots to earnings reports from financial giants like Goldman Sachs, Morgan Stanley, and Bank of America. Meanwhile, Tuesday’s positive earnings from JPMorgan Chase and Citigroup also showcased caution regarding U.S. tariff policies. As of early morning trading, Dow E-minis registered a minimal decline, while S&P 500 and Nasdaq E-minis showed sharper drops, reflecting heightened market apprehension.
Tuesday’s inflation report, indicating rising prices fueled by President Donald Trump’s tariffs, dimmed prospects for further rate cuts by the Federal Reserve. Current market betting suggests limited Fed easing before year-end, with the prospect of a July rate cut dismissed and a September move viewed skeptically.
Trader focus is now on the imminent release of producer prices data, providing indicators of escalating costs at the production level. Trade tensions continued as Trump declared a 19% tariff on Indonesian goods, part of fast-tracked deals ahead of an August 1 deadline for expansive tariff increases. Simultaneously, the European Union braces for possible retaliatory tariffs should negotiations with Washington reach an impasse.
Despite these concerns, the Nasdaq recently achieved a record close driven by Nvidia’s soaring shares, following its decision to restore its chip sales to China. However, the chip designer’s stock showed a slight drop in premarket trading.
Elsewhere, Global Payments experienced a notable surge after reports revealed that Elliott Management, an activist hedge fund, had acquired a major stake in the payments technology company.