S&P, Dow, Nasdaq Futures Tumble After Trump Escalates Trade Fight With Europe

July 14 - U.S. index futures slipped Monday as President Donald Trump unveiled fresh levies on key trading partners, dimming early-week market sentiment.

S&P 500 futures inched down about 0.4%, while Nasdaq 100 futures and Dow futures each fell roughly 0.3%. Traders also digested a slight uptick in Treasury yields: the 10?year note rose one basis point to 4.43%, while the 2?year held near 3.90%.

Trump said imports from the European Union and Mexico will face a 30% tariff starting Aug. 1 unless new trade terms are reached. The move follows last week's 35% levy on Canadian goods, fueling concerns about consumer price pressures.

With risk markets near highs and bond yields steady, these tariffs could trigger larger moves in thin holiday trading, said Deutsche Bank's Jim Reid ahead of potential August actions.

Investors are gearing up for a heavy calendar this week, with June's consumer price index due Tuesday and wholesale inflation data on Wednesday. Reid noted that traders will watch for early signs of tariff?driven price changes in core goods.

UBS economist Paul Donovan added that inventory delays mean only a fraction of tax effects will surface immediately, though companies may begin passing costs to buyers.