"Most firms are passing tariff costs to consumers, but consumption growth remains weak, analysts say. S&P 500 futures are down -0.51% this morning and futures on the Nasdaq 100 are down even more, -066%. Dow Jones futures were down -0.37%. The U.S. markets have had a three-day weekend so it's difficult to say exactly why investors seem so skittish. Top of the list of usual suspects is, of course, "uncertainty.""
"An appeals court threw out President Trump's tariff plan last week, which the markets had finally priced-in after months of uncertainty. More uncertainty lies ahead as the U.S. Supreme Court takes the case. And then there is Trump's war against the Fed, in which his allies have asked the Department of Justice to conduct criminal probes of both Chairman Jerome Powell and Governor Lisa Cook."
""Long-term inflation expectations are the definitional metric of an independent central bank and these have barely moved in recent weeks. Or perhaps the market believes that even though President Trump is increasing his influence over the Fed, he remains committed to keeping inflation low even at the cost of weaker growth ... To sum up, the market is currently not pricing any long-term shift in the Fed's reaction function around inflation.""
Gold prices reached a record high as major U.S. equity futures fell, driven by investor concern about tariffs, Fed independence and weakening consumer spending. S&P 500 futures fell 0.51%, Nasdaq 100 futures fell about 0.66%, and Dow Jones futures dropped 0.37%. Markets remained skittish after a three-day weekend and amid uncertainty from an appeals court throwing out the tariff plan and a pending U.S. Supreme Court review. Political pressure on the Fed escalated as allies asked the Department of Justice to probe Chair Jerome Powell and Governor Lisa Cook. Analysts note firms are passing tariff costs to consumers while consumption growth stays weak.
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