U.S. futures slipped on Monday morning after Trump vowed to impose 30% tariffs on EU and Mexican imports by August 1, stoking renewed concerns about a trade war. S&P 500 and Nasdaq futures each dropped 0.3% ahead of the start of earnings season, which kicks off Tuesday with the reports from major banks. S&P companies are now expected to post 5.8% profit growth, down from the 10.2% forecast made on April 1, according to LSEG IBES. The EU said it will extend its suspension of retaliatory measures and continue negotiations, but Germany warned of possible firm action. Markets remained cautious, with global equities mostly down and yields rising in Germany and Japan. The June CPI data is set for release on Tuesday and could reveal the early impact of tariffs on U.S. prices.
