Fed Chair Powell says tariffs may increase inflation
Federal Reserve Chair Jerome Powell says the economy is in “good condition,” but notes inflation’s uncertainty.
The stock market rout in reaction to Trump’s sweeping tariffs announced Wednesday continued as pre-market trading opened Sunday, as the three major American indices saw futures selloff.
In the first 30 minutes of trading the Dow Jones, S&P and NASDAQ each slipped over 3.5%, with the NASDAQ leading the plunge with an over 4.5% loss − according to data from Yahoo Finance.
The futures selloff comes on the heels of an over $5 trillion loss in market value in the S&P 500 in the two trading days since Trump announced his tariffs.
Reuters reported on Sunday the European Union will likely approve a first set of targeted counter measures on up to $28 billion of U.S. imports in the coming days, following China’s salvo − announcing it will impose reciprocal 34% tariffs on all imports from the U.S. Friday.
Trump administration officials appeared to ignore calls from investors to delay the implementation of the wide-ranging import taxes, with Commerce Secretary Howard Lutnick saying on CBS’s “Face the Nation” Sunday, “the tariffs are coming. He announced it and he wasn’t kidding. The tariffs are coming.”
What are Dow Jones futures doing?
Dow Jones Industrial average futures fell 1,461 points, or 3.79%, in the first hour of pre-market trading.
What are S&P 500 futures doing?
S&P 500 futures fell 216 points, or 4.23%, in the first hour of pre-market trading.
What are NASDAQ futures doing?
NASDAQ futures fell 865.75 points, or 4.94%, in the first hour of pre-market trading.
What happened to stock prices after Trump’s tariff announcement?
The Dow Jones closed nearly 8% down, the S&P closed over 9% down and the NASDAQ closed 10% down for the week.
Economists have warned that Trump’s tariffs have heightened the likelihood of a recession.
JP Morgan chief economist Michael Feroli forecasted a recession caused by Trump’s tariffs and an unemployment rate that is pushed over 5% in the second half of 2025 in a note to the firm’s clients obtained by Yahoo Finance.
“We now expect real GDP (gross domestic product) to contract under the weight of the tariffs,” Feroli wrote Friday.
