U.S. stock futures extended their losses late Sunday after President Donald Trump announced plans to raise global tariffs under a different legal framework, following a Supreme Court ruling that invalidated key parts of his earlier trade measures.
Investors were also cautious ahead of highly anticipated earnings from NVIDIA Corporation, which are scheduled for release on Wednesday. The results are expected to provide fresh insight into the strength of demand across the artificial intelligence sector.
By 23:12 ET (04:12 GMT), S&P 500 futures had fallen 0.7% to 6,875.0 points. Nasdaq 100 futures declined 0.9% to 24,851.50 points, while Dow Jones futures slipped 0.6% to 49,547.0 points.
Markets reverse after initial tariff relief
Wall Street had ended Friday on a positive note after the Supreme Court decision initially raised hopes of relief from Trump’s earlier tariff programme. That optimism helped offset weaker-than-expected U.S. economic data.
Markets also found some comfort in the absence of U.S. military action against Iran over the weekend, easing fears of immediate geopolitical escalation. Nuclear negotiations between Washington and Tehran are expected to continue later this week.
However, sentiment shifted again after President Donald Trump confirmed he would increase a temporary universal import tariff to 15%, up from 10%. The announcement came shortly after the Supreme Court ruled that he had exceeded his authority by declaring an economic emergency to justify previous tariffs.
Trump first introduced a 10% tariff following the ruling and then quickly raised it to 15%. Several countries that had previously reached trade agreements with the United States are now reportedly seeking clarification or renegotiation of the new levies.
The president invoked Section 122, a rarely used and legally untested provision, to implement the 15% tariff. No prior U.S. president has relied on this statute, and any extension beyond 150 days would require congressional approval.
Trump’s tariff policies have drawn criticism in recent months for contributing to higher living costs. Recent trade data for December indicated that the measures did little to narrow the U.S. trade deficit in 2025.
Nvidia earnings in focus as AI outlook questioned
Attention now turns to NVIDIA Corporation, a key player in the artificial intelligence industry and the world’s most valuable publicly listed company. Nvidia produces advanced AI chips that power data centers and machine learning systems, making its earnings report a major event for technology investors.
The company is expected to report fiscal fourth-quarter earnings on February 25. Analysts project earnings per share of $1.52 on revenue of $65.56 billion, compared with $0.89 per share and $39.33 billion in revenue a year earlier.
Nvidia’s results come at a time of heightened uncertainty around the AI sector. In recent weeks, software and logistics stocks have faced heavy selling amid concerns that rapid AI development could disrupt existing business models. The weakness has also spilled over into broader market segments.
Investors will closely monitor Nvidia’s guidance and commentary for signals about AI-related capital spending and future growth prospects, which could shape sentiment across the wider technology sector.
