U.S. stock index futures declined on Sunday night after President Donald Trump announced he would reimpose a broader tariff using a separate legal authority, stepping in after the Supreme Court found limits on his earlier tariff actions. The announcement added fresh uncertainty to trade policy even as markets prepare for key corporate earnings.
By 18:44 ET (23:44 GMT), S&P 500 futures were down 0.3% at 6,902.25 points, Nasdaq 100 futures had slipped 0.5% to 24,945.75 points, and Dow Jones futures fell nearly 0.3% to 49,547.0 points. The moves came as investors weighed the policy development alongside upcoming results from NVIDIA Corporation (NASDAQ:NVDA), which are due this Wednesday.
On Friday, equity markets had traded higher after the Supreme Court decision created expectations of potential relief from the previous tariffs, allowing some investors to overlook weaker-than-expected economic data. That optimism, however, was tested over the weekend when the president said he would increase a temporary universal tariff from 10% to 15% by invoking a different, rarely used statute.
The president cited Section 122 to impose the 15% levy. Section 122 has not been used by any prior president, and the president will need Congressional approval to extend the duties beyond 150 days. The Supreme Court ruling and the subsequent shift in legal approach have both contributed to heightened near-term uncertainty about U.S. trade policy as governments and companies try to assess how the administration will implement and maintain these duties going forward.
Reports over the weekend indicated that several major trading partners with recently negotiated deals are now seeking either renegotiation or clearer guidance on the levies. The tariffs have attracted mounting criticism for their role in raising consumer costs. Trade figures for December, released last week, also suggested the tariffs did little to reduce the country's large deficit in 2025.
Beyond trade headlines, attention in the markets is focused on NVIDIA's upcoming earnings report for its fiscal fourth quarter, scheduled for February 25. NVIDIA is the leading supplier of high-end processors used in artificial intelligence workloads, making its results a key data point for gauging demand in the AI-linked segments of tech and enterprise spending.
Forecasts show analysts expect NVIDIA to report earnings per share of $1.52 on revenue of $65.56 billion for the quarter. By comparison, the company reported EPS of $0.89 and revenue of $39.33 billion a year earlier. Those projections underline the extent of expected growth in revenue and per-share profitability versus the prior year.
NVIDIA's report arrives amid uncertainty around the outlook for the AI industry and its broader implications for the technology sector. Recent weeks have seen heavy selling in software and logistics names amid investor concern about AI-driven disruption, with losses spilling over into other parts of the market.
What to watch this week
- Market reaction to the president's tariff maneuver under Section 122 and the potential need for Congressional approval after 150 days.
- NVIDIA's fiscal fourth-quarter earnings on February 25 and how its results may influence sentiment around AI-related demand.
- Responses from major trading partners seeking renegotiation or clarification on the new tariffs and how that may affect trade flows and corporate planning.