U.S. stock futures fell on Monday morning, reflecting persistent worries about the U.S.-China trade relationship and potential economic impact. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 1.16%, 0.94%, and 1.08%, respectively, at 6:06 a.m. EST, April 21.
These pre-market declines follow a week where all three major U.S. indices recorded their third weekly loss in the past four. The S&P 500, the Dow Jones, and the Nasdaq Composite (NDAQ) ended the holiday-shortened week down by 1.5%, 2.7%, and 2.6%, respectively.
Among large stock price movements, a significant sell-off in UnitedHealth (UNH) stock was a major drag on the Dow Jones on Thursday. The insurer’s stock declined by over 22% after the company lowered its full-year outlook and reported disappointing quarterly results. Also, Eli Lilly (LLY) surged 14.3% after posting positive results from a Phase 3 trial of its weight loss pill, orforglipron.
The lack of progress in direct trade negotiations between the U.S. and China continued to weigh on investor sentiment. These worries were further heightened by Chicago Federal Reserve President Austan Goolsbee’s comments over the weekend. He cautioned that tariffs could lead to a slowdown in U.S. economic activity by the summer.
Looking ahead, Consumer Sentiment, New Home Sales Data, S&P Global flash U.S. PMI, and Durable Goods Orders are the key economic reports that investors are awaiting this week.
Also, the market is bracing for a busy earnings week, with over 100 S&P 500 companies scheduled to report their results. This includes key “Magnificent Seven” stocks like Alphabet (GOOGL) and Tesla (TSLA). Moreover, major firms like Verizon (VZ), AT&T (T), Boeing (BA), American Airlines (AAL), Procter & Gamble (PG), PepsiCo (PEP), Chipotle Mexican Grill (CMG), and Intuitive Surgical (ISRG), will release their quarterly numbers this week.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.362%. Simultaneously, WTI crude oil futures are trending lower, hovering near $62.97 per barrel as of the last check.
Also, the dollar fell to a three-year low on Monday, as investors reacted to President Trump’s criticism of Federal Reserve chair Jerome Powell. This came after Powell warned last week that tariffs could lead to slower economic growth and higher inflation.
It must be noted that President Trump has often pressured Powell to cut interest rates. Despite this, the Fed has kept rates steady this year after three reductions in 2024. Importantly, analysts warn that any attempt to remove Powell or influence the Fed’s independence could lead to market instability.
Asia-Pacific Markets Ended Higher on Monday
Most of the Asia-Pacific indices were mixed today as investors reacted to China’s central bank keeping lending rates steady for the sixth month in a row. Also, ongoing uncertainty about U.S. tariff policies added to market volatility.
At the same time, Japan’s Nikkei and Topix indices closed lower by 1.3% and 1.18%, respectively. However, China’s Shanghai Composite and Shenzhen Component indices gained 0.45% and 1.27%, respectively.
It must be noted that the Hong Kong market is closed today in observance of Easter Monday.
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