US stock futures fell Sunday as President Trump and top administration officials suggested country-specific tariffs would take effect on Aug. 1, offering more potential confusion to trading partners but also potential breathing room for negotiations.
Futures attached to the Dow Jones Industrial Average (YM=F), the S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) all dropped around 0.3%.
Trump had targeted July 9 as a self-imposed deadline, when his “pause” on steep April tariffs would go back into effect. Global markets have been bracing for that potential shock, with the US only having reached deals with the UK and Vietnam, as well as a framework toward an agreement with China.
But on Sunday, both Treasury Secretary Scott Bessent and Trump suggested that while Trump could send out letters this week informing countries of their tariff rates, those duties would not go into effect until Aug. 1.
“President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on Aug. 1 you will boomerang back to your April 2 tariff level. So I think we're going to see a lot of deals very quickly,” Bessent told CNN's “State of Union.”
Bessent hinted at several possible deals in the coming days, suggesting the focus this week is clarity with 18 major trading partners before setting duties for the 100-plus other countries that the administration has in its sights for trade taxation. Wall Street is waiting to see how trade talks between the European Union and Canada go, in addition to other key partners.
Read more: The latest on Trump's tariffs.
The tariff focus comes after Wall Street capped a strong week, as both the S&P 500 and Nasdaq closed at record highs on Thursday. A barometer market sentiment, known as the Levkovich Index, has current feelings at a ‘euphoric' level, indicating the potential for overstretched positions.
And the market's momentum faces real tests. With equities at record levels, investors are wary that any sharp turn in trade negotiations could trigger volatility.
Earnings are coming back into the conversation this week, with Thursday seeing reports from Delta (DAL), Conagra Brands (CAG), Levi's, (LEVI) and WD-40 (WDFC).
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Stock market coverage for Monday, July 7th, 2025
