As investors brace for a critical week ahead, U.S. stock futures saw a dip on Monday. With President Donald Trump’s Tariff Plans announcements on the horizon and the release of essential economic data, the market is poised for potential shifts that could have deep consequences for global trading. Here’s a closer look at what’s happening in the financial world this week.

1. U.S. Stock Futures Experience a Sluggish Start

Monday’s trading saw U.S. stock futures experiencing a downward trajectory. Investors are holding their breath in anticipation of major events, including new tariff announcements and key economic indicators. As of 03:39 Eastern Time (07:39 GMT), Dow Jones futures dropped 173 points (0.4%), the S&P 500 fell 38 points (0.7%), and Nasdaq 100 decreased by 215 points (1.1%).

Major indices on Wall Street wrapped up last week with losses, as concerns grew over Trump’s proposed tariffs and their potential impact on economic growth and inflation. Data from Friday revealed that U.S. consumer spending grew less than expected in February, while the core price index rose at its fastest pace in 13 months. Additionally, inflation expectations for the next 12 months surged to a nearly two-and-a-half-year high in March.

James Knightley, Chief International Economist at ING, commented, “High inflation and reduced consumer spending are trends likely to be aggravated by Trump’s aggressive tariff actions and government spending cuts.” He also noted that worries over “stagflation”—a scenario of stagnant growth coupled with high prices—are rising, limiting the Federal Reserve’s ability to reduce interest rates. The Fed kept rates unchanged in its latest meeting, largely due to the uncertainty surrounding Trump’s trade policies.

2. All Eyes on “Freedom Day” – New Tariffs Expected

Investors are preparing for April 2, a day that could reshape international trade. On this day, President Trump is expected to announce new tariffs that could significantly impact global trade dynamics. Analysts predict that this day will mark a key moment in Trump’s second term, as he continues to adjust U.S. trade policies.

Trump has referred to these tariff announcements as part of his “Freedom Day,” and many believe the president is likely to impose tariffs on both allies and competitors, especially those with significant external trade barriers. According to his cabinet, at least 15 countries could be targeted, although sources from The Wall Street Journal suggest even more countries may be on the list. The report also hinted at a possible blanket 20% tariff on all countries with which the U.S. has a trade deficit.

Last week, Trump followed through on his earlier promise to impose tariffs on imported vehicles, particularly targeting foreign automakers. Strategists have warned that this could drive up prices for domestic cars. However, Trump stated over the weekend that he doesn’t mind if foreign automakers raise prices for consumers, arguing that tariffs are necessary to fix trade imbalances, fund tax cuts, and bring manufacturing back to the U.S.

3. Trump’s Reaction to Putin and the Threat of Secondary Tariffs

In a separate development, Trump expressed frustration with Russian President Vladimir Putin, claiming that Putin had undermined the credibility of Ukrainian President Volodymyr Zelensky. Trump, who has been working to broker an agreement to end the war in Ukraine, warned that if he felt the Kremlin was obstructing his efforts, he would impose secondary tariffs on Russian oil buyers, ranging from 25% to 50%.

This marked a shift in tone, coming after weeks of praising Putin and criticizing Zelensky. The change has sparked concerns among European leaders about the possibility of warming relations between Washington and Moscow, potentially undermining the U.S. commitment to regional defense. Nevertheless, Trump emphasized that he still maintains a “very good relationship” with Putin, adding that his frustration would subside if Putin “acts properly.”

Read More: Trump Announces New Reciprocal Tariffs

4. Gold Price Hits New Record as Safe-Haven Demand Grows

In commodity markets, gold prices surged sharply on Monday, reaching new record highs. The growing demand for safe-haven assets was bolstered by reports that Trump is considering imposing broader tariffs this week. Gold had a strong upward trajectory in March, driven by investor concerns over Trump’s tariffs and their potential economic fallout.

The fear of a looming recession in the U.S. also contributed to the rise in gold prices. Goldman Sachs now estimates a 35% chance of a recession occurring within the next 12 months. Meanwhile, broader metal markets saw a decline, and the dollar weakened, further supporting the surge in gold prices.

5. Oil Market Volatility and Seasonal Losses Loom

Oil prices remained relatively stable on Monday but are on track to post seasonal losses as concerns about slowing economic activity under a new global trade regime weigh heavily on the market. Both major oil benchmarks are set to experience their first seasonal decline in two quarters, despite three consecutive weeks of gains.

OPEC and its allies, known as OPEC+, are scheduled to begin increasing oil production in April, which could further influence oil prices. The market will be closely watching how this shift impacts prices and whether global demand can keep up with increased supply.

Conclusion

This week is shaping up to be a critical one for financial markets, with potential tariff announcements, fluctuating commodity prices, and concerns about economic growth and inflation taking center stage. Investors will need to stay alert as these developments unfold and keep a close eye on key indicators that could drive market volatility.

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