US stock futures fell sharply early Monday as investors braced for a week of significant developments. Futures tied to the Dow Jones Industrial Average dropped 420 points, while S&P 500 futures were down 54 points and Nasdaq futures fell 200 points. The moves come after each of the three major averages logged their third weekly decline in the last four trading weeks.
While the S&P 500 closed out Thursday’s session higher, the broad market index still finished the holiday-shortened week 1.5% lower. The Dow and Nasdaq posted their third consecutive losing session, each finishing the week with a more than 2% pullback for the four-day period. U.S. markets were closed on Friday in observance of Good Friday.
Heightened concern surrounding President Donald Trump’s tariffs has weighed on Wall Street recently. The major averages are down around 7% since April 2, when Trump announced a raft of levies on imports from other countries. “The concurrent slump in stocks, the USD, and Treasuries suggests Trump’s trade war has set in motion an exodus from American financial assets that no amount of negotiating can reverse,” wrote Adam Crisafulli of Vital Knowledge.
This week, two of the “Magnificent 7” take the spotlight as part of the 120 S&P 500 companies reporting: Elon Musk’s Tesla and Alphabet.
stocks fall amid trade war concerns
Both stocks symbolize this year’s shift away from the high-flying tech stocks of recent years.
Alphabet stock is down nearly 20% so far in 2025, while Tesla has lost 40%. “We view this as a critical moment: if Musk leaves the White House there will be permanent brand damage, but Tesla will regain its most important asset and strategic thinker full time to drive the vision and long-term story,” Wedbush analyst Dan Ives wrote in a Sunday note. If Musk chooses to stay involved, it could negatively impact Tesla’s brand.
Gold surged to a record high, driven by a dip in the US dollar, President Trump’s criticism of the Federal Reserve, and ongoing trade war fears, fueling demand for safe-haven assets. Bitcoin also rebounded as Trump’s push against Federal Reserve Chairman Jerome Powell weakened the dollar. “The traditional safe-haven playbook is what the market is moving toward,” said Keith Lerner, Co-Chief Investment Officer at Truist Advisory Services.
“Being in more defensive sectors is a way to hide through the storm until investors feel like there is more clarity.”
In other news, Pope Francis has died at 88, the Vatican confirmed. The Pope passed away on Easter Monday at his residence in Casa Santa Marta. He had recently met with US Vice President JD Vance and made a public appearance on Easter Sunday.
Stay tuned for more updates as the trading week progresses and as companies reveal their earnings amidst a turbulent market landscape.
