S&P 500 stocks fall on tariff fears ahead of Fed decision

On Monday morning, major U.S. futures indexes opened lower, reflecting growing apprehension in markets over recent statements by former President Donald Trump on tariffs. Investors are also closely monitoring the start of the Federal Reserve meeting, scheduled for Tuesday.

SP 500 futures fell about 0,9%, signaling a potential break in a two-decade winning streak. The Dow Jones Industrial Average fell 0,7%, while the Nasdaq 100 fell about 1%, led by technology companies.

The US dollar also weakened amid uncertainty over a possible resumption of trade tensions between the US and China. The recent wave of optimism in markets had been driven by signs of a resumption of negotiations between the two powers, but Trump's comments over the weekend threw cold water on expectations.

In a social media post, Trump said he plans to impose a 100 percent tariff on foreign films, a measure that would be implemented immediately, although he did not provide further details. He also ruled out a conversation with Chinese President Xi Jinping this week, despite reiterating his desire for a “fair deal” with China.

In addition to trade tensions, markets are also monitoring the Federal Reserve's agenda. The central bank's two-day meeting is expected to keep interest rates unchanged, but the institution's stance will be closely scrutinized in light of recent political pressures. Trump has publicly criticized Fed Chairman Jerome Powell, calling for rate cuts amid mixed economic signals.

Investors are also watching important data from the US economy. The industrial activity index will be released later on Monday, while the number of unemployment insurance claims is expected on Thursday, both with the potential to impact market expectations.

Among corporate highlights, Berkshire Hathaway shares fell about 3% in premarket trading after Warren Buffett announced he will step down as CEO by the end of 2025. Meanwhile, earnings season continues with eagerly awaited releases from Ford, Palantir, Disney and AMD.

• Nasdaq, SP 500 futures start the week lower
• Trump resumes tariff speech and impacts market sentiment
• Fed starts meeting with focus on interest rate policy