Dow Futures Edge Lower As Global Tensions Spook Investors

U.S. stocks appear set for a weak opening on Monday amid rising geopolitical tensions around the world, following an escalation in the ongoing Russia-Ukraine war.

A flurry of accusations and counter-accusations between the U.S. and Chinese governments also spiked trade tensions, days after President Donald Trump’s tariffs were blocked and subsequently unblocked.

While Dow Jones futures were down 0.34% at the time of writing, the S&P 500 futures fell 0.48%, and the tech-heavy Nasdaq 100’s futures declined 0.66%. Futures of the Russell 2000 index were down 0.46%.

Meanwhile, the SPDR S&P 500 ETF Trust (SPY) fell 0.42%, while Invesco QQQ Trust (QQQ) declined 0.55% on Monday morning.

Bitcoin (BTC) gained 0.51% in the past 24 hours.

Asian markets ended Monday’s trading session on a largely negative note, with the TWSE Capitalization Weighted Stock index declining 1.64%, followed by the Nikkei 225 index closing the day with a decline of 1.32%.

The Hang Seng index fell 0.57%, while KOSPI gained 0.05%. The Shanghai Composite was closed for trading on account of the Dragon Boat festival.

Fed's Take On Rate Cuts

Fed Governor Christopher Waller on Sunday said he is open to interest rate cuts this year, but it hinges on whether there’s “good news” to go with it.

The good news, Waller said, would be if Trump’s tariffs settle close to his lower tariff scenario, and if inflation continues on its path to the central bank’s 2% target.

“Fortunately, the strong labor market and progress on inflation through April gives me additional time to see how trade negotiations play out and the economy evolves,” he said in prepared remarks.

This week is packed with speeches and economic data releases.

Dallas Fed President Lorie Logan, Chicago Fed President Austan Goolsbee, and Federal Reserve Chair Jerome Powell are scheduled to speak on Monday.

Fed’s Beige book, construction spending data, ADP employment numbers, U.S. employment, unemployment, and wage reports are all scheduled to be released throughout the week.

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Also See: Fed’s Goolsbee Says Interest Rates Could Come Down In 2025 If Trump’s Tariffs Are Avoided