Posted on 02/02/2025 6:26:46 PM PST by lasereye
Stock futures tumbled Sunday night to kick off a new trading month, as investors weighed new U.S. tariffs on goods from key trade partners and their potential impact on the economy and corporate profits.
Futures tied to the Dow Jones Industrial Average slid 463 points, or 1%. S&P 500 futures dropped 1.6%, while Nasdaq-100 futures lost 2.1%.
President Donald Trump on Saturday slapped a 25% tariff on goods from Mexico and Canada. He also placed a 10% levy on imports from China. The U.S. does about $1.6 trillion in business with the three countries.
Canada responded with retaliatory tariffs of its own, while Mexico said it would explore levies on U.S. imports. The Chinese government, meanwhile, said it would file a lawsuit with the World Trade Organization.
“Markets may now need to take the rest of Trump’s tariff agenda literally rather than just seriously … If this new level of seriousness gets priced in suddenly, Monday could be a rough day for markets,” Wolfe Research head of U.S. policy and politics Tobin Marcus said in a note.
Oil and gasoline futures traded higher after the U.S. tariffs. The U.S. dollar also advanced.
Traders are also looking ahead to the biggest week for fourth-quarter earnings, which have become increasingly important in determining the state of the market as tariff concerns ramp and artificial intelligence stocks remain under scrutiny. More than 120 companies in the S&P 500 are set to report their results.
The January nonfarm payrolls report will also be out Friday, adding color to the employment picture so far this year. Economists polled by Dow Jones expect that 175,000 jobs were added last month. The unemployment rate is predicted to have remained unchanged at 4.1%.
(Excerpt) Read more at cnbc.com ...
THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID. WE ARE A COUNTRY THAT IS NOW BEING RUN WITH COMMON SENSE — AND THE RESULTS WILL BE SPECTACULAR!!!
Will this end well? As Trump says: YES, MAYBE (AND MAYBE NOT!).
In the short run Trump is pushing prices higher. He won in large part because of inflation. He's taking a huge gamble.
I think Trump calculates that since those countries run big trade surpluses with us they have more to lose from a trade war. But they may decide otherwise. Trudeau's not running for reelection anyway. The Chinese of course don't even have elections.
Oh, noes!!! A 1% drop! O, the Hugh manatee!
The tariffs are an existential threat to the regimes of Canada and Mexico.
They are an inconvenience to the US.
They capitulate in 15 days or less.
Pelosi will be fine
A 1% drop is a buying opportunity.
The globalists arehaving a tantrum.
I tanked up my 36 gal p/u and bought >1/2 tank of gas [in 5 gal. jugs] for my wife’s car for when it gets below a half.
Plus I seem to have a 6 month supply of Diesel for my “Town Car”.
YMMV
[No TP shortage kr@p for me going forward.]
What many have missed is Trump has stated IF countries move their manufacturing plants to the US there will be no tariffs and taxes will be much lower than their native countries.
Sounds like a good plan, problem is how long it takes for foreign companies to move operations to the US.
I, for one, do not think these tariffs are even close to a good idea.
https://www.reuters.com/world/us/trump-world-companies-make-products-us-or-face-tariff-2025-01-23/
Trump to global firms: Manufacture in USA or face tariffs….
Emini now down 2%. Nikkei same
-PJ
Problem really is how long it takes for foreign invaders to move their operations out of the US...
Not an accident that the US trading partners involved have been mentioned in the border crisis
>>>Oh, noes!!! A 1% drop! O, the Hugh manatee!
I know, the sky is falling. Yet Jimbo Cramer would be saying, “what’s not to like?”
What you could do is deploy armed people to Wall Street and defund all courts that might hear lawsuits — and then confiscate every penny in the US stock market.
It would get you about $39 Trillion. Then pay off the $37T national debt with that and have $2 Trillion left over for working capital.
Anyone who complains is shot. If they try to sue, no courts
-583 Dow futures at this time.
No one likes to admit their wrong. But is your pride worth your destruction? (not you personally, Freepers).
The US got along just fine on tariffs, till 1913.
Saw this coming, sold about 40% of my position in equities on Friday. Taking advantage of the predictable media doom-and-gloom over the tariffs. Will be back in a couple of weeks after the manufactured panic has died down to re-purchase at cheaper prices.
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