U.S. stock index futures declined on Sunday evening, as investors absorbed a postponed tariff deadline from President Donald Trump and strong U.S. payroll data that reduced hopes for imminent interest rate cuts from the Federal Reserve.

S&P 500 Futures dropped 0.3% to 6,303.0, Nasdaq 100 Futures decreased 0.3% to 22,987.0, and Dow Jones Futures fell 0.3% to 44,972.0 by 19:15 ET (23:15 GMT), reflecting a risk-averse sentiment as the post-holiday trading week begins.

Trump Moves Tariff Deadline to August 1; Market Seeks Clarity

President Trump confirmed last week that he will begin issuing formal tariff letters to major U.S. trading partners in the coming days, outlining new duties to take effect from August 1—a delay from the initial July 9 deadline.

Commerce Secretary Howard Lutnick stated on Sunday that the administration is focused on finalizing tariff rates, while Treasury Secretary Scott Bessent warned that tariffs could reach up to 50% if trade agreements are not finalized.

So far, the U.S. has signed a few agreements, notably with the UK and Vietnam, while negotiations with Japan, the European Union, and India remain ongoing, contributing to market uncertainty.

Strong Payrolls Complicate Fed Rate Cut Predictions

Thursday’s nonfarm payrolls report revealed stronger-than-expected job growth in June, leading traders to reassess the likelihood of a rate cut in July or September. While Wall Street had previously anticipated aggressive easing, the latest job data has disrupted that outlook.

Investors are awaiting Federal Reserve Chair Jerome Powell’s forthcoming remarks and the July CPI report for hints on monetary policy direction.

Wall Street Hits Record Highs, Yet Volatility Looms

Wall Street achieved all-time highs last week, with the S&P 500 and Nasdaq boosted by optimism over delayed tariffs and ongoing momentum in AI tech stocks, particularly Nvidia (NASDAQ:NVDA).

Nonetheless, profit-taking could introduce short-term volatility, especially due to uncertainties regarding:

• U.S. trade policy direction

• Timing of Federal Reserve rate cuts

• Upcoming corporate earnings reports set for mid-July

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Conclusion

With Trump’s tariffs delayed but still undefined and rate cut expectations fading, markets may face a turbulent period. Traders are on the lookout for clarity, whether through trade negotiations or commentary from the Fed, to stabilize the recent rally.

Will August 1 bring resolution or further uncertainty?