U.S. stock indexes declined on Sunday evening after steep weekly losses on Wall Street, as investors remained wary of uncertainty surrounding President Donald Trump’s tariff policies and mulled over Federal Reserve Chair Jerome Powell’s cautious remarks.

S&P 500 Futures fell 0.7% to 5,735.0 points, while Nasdaq 100 Futures dropped 0.9% to 20,045.0 points by 19:41 ET (23:41 GMT). Dow Jones Futures lost 0.5% to 42,611.0 points.

Investors assess Powell’s cautious comments; Feb jobs data

On Friday, Fed Chair Powell indicated that the central bank would maintain a patient stance on interest rates, acknowledging that the U.S. economy remains in a good place despite elevated uncertainties.

Powell highlighted the Fed’s cautious approach in light of President Donald Trump’s recent economic policy changes, including tariffs and federal worker layoffs.

Recent economic data reflected a mixed picture: the U.S. economy added 151,000 jobs in February, slightly below expectations, and the unemployment rate edged up to 4.1%. 

Despite these figures, concerns about weaker labor demand and potential layoffs persisted.

The Federal Reserve’s dual mandate—to maintain low inflation and high employment—faces challenges amid these uncertainties. Powell underscored the importance of waiting for clearer economic signals before making policy decisions.

Market participants now keenly await the crucial consumer price inflation report due this week, which will provide key insights ahead of the Fed’s interest rate decision scheduled for March 18-19.

Trump’s shifting trade policies fuel market turmoil

Major U.S. stock indexes experienced heavy weekly losses last week, when Trump imposed 25% tariffs on Mexico and Canada, but later exempted most of the goods for a month, creating uncertainty around his trade policies.

The S&P 500 declined nearly 3% last week, closing at 5,770.20 points, while the Dow Jones Industrial Average fell by 2.2% for the week to end at 42,801.72.

The NASDAQ Composite experienced a 3.5% weekly drop.

Trump also increased tariffs on Chinese goods, which prompted retaliatory levies from China. He is set to implement worldwide reciprocal tariffs from April 2, which could further erode market sentiment.

Meanwhile, Commerce Secretary Howard Lutnick said on NBC’s “Meet the Press” on Sunday that Trump is steadfast in applying tariff pressure on Mexico, Canada, and China due to their handling of fentanyl.