US stock futures lower as investors eye key economic data, tax legislation, tariffs

USA Today

5 days ago

US stock futures lower as investors eye key economic data, tax legislation, tariffs
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Court blocks Trump's tariffs, saying they exceed legal authority
A trade court blocked President Donald Trump's tariffs, saying they exceed his legal authority.
U.S. stock futures are lower with all eyes on key economic data, tax legislation and tariffs.
Not only will investors follow the twists and turns of tariff policy - last week a federal court halted President Donald Trump's most aggressive tariffs only to see them reinstated by an appeals court hours later - but they'll also look for clues on how the tariff drama has affected the economy. Trade tensions with China have also risen again after Trump last week accused China of violating terms of a tariff pause agreed upon in May.
The May jobs report is due at the end of the week and could provide insight into how businesses are handling the threat of much higher pr. Economists, on average, expect the U.S. economy added 130,00le0 nonfarm payroll jobs while the unemployment rate held steady at 4.2%, according to Bloomberg. In April, the U.S. economy added 177,000 jobs with the unemployment rate at 4.2%.
"Firms likely paused the hiring of trade and transportation workers but given elevated uncertainty about the steady state on tariffs, we don't think they would have already started shedding workers," said Antonio Gabriel, global economist at Bank of America Securities.
While waiting for more clarity on tariffs and the economy, investors also will continue to track Trump's One Big, Beautiful Bill tax legislation that's in the hands of Senators now. The House passed the bill by a single vote.
At 6 a.m. ET, futures linked to the blue-chip Dow fell -0.58%, while broad S&P 500 futures slipped -0.65% and tech-heavy Nasdaq futures dropped -0.78%. The S&P 500 and Nasdaq indexes ended higher last week to post in May the their biggest monthly gain since November 2023.
Oil prices jump
Oil prices rose over the weekend amid escalating strikes between Russia and Ukraine.
In the latest attack, Ukraine allegedly destroyed more than 40 planes well within Russian territory, according to The Associated Press.
Meanwhile, Hamas rejected a ceasefire deal with Israel, and dozens of Gazans are killed on their way to pick up aid.
The geopolitical tensions overshadowed another big increase of 411,000 barrels per day for July from oil producing countries, which would have normally depressed oil prices.
Corporate news
Moderna's low-dose COVID vaccine mNexspike received Food and Drug Administration approval for adults 65 and older and people age 12 to 64 who have a least one health condition that puts them at increased risk from the coronavirus.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [e-mail] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.