Stock futures tick higher after Monday’s big sell-off; Trump’s Mexico and Canada tariffs loom: Live updates

U.S. stock futures edged upward Monday night following a significant sell-off earlier in the day, as investors braced for the implementation of new tariffs on imports from Mexico and Canada, set to take effect Tuesday.

Market Recap: Monday's Sell-Off

The major U.S. stock indices experienced sharp declines during Monday's trading session:

• Dow Jones Industrial Average: Fell 649.67 points (1.48%), closing at 43,209.

• S&P 500: Declined 1.76%, marking its most significant daily loss since December.

• Nasdaq Composite: Dropped 2.64%, with notable losses in technology stocks.

These declines erased the gains achieved earlier in the year, pushing the S&P 500 into negative territory for 2025.

Technology Sector Under Pressure

The technology sector bore the brunt of Monday's downturn:

• Nvidia: Shares plummeted nearly 9%, reaching their lowest level since September.

• Tesla: Experienced a decline of almost 3%.

Investors shifted focus toward defensive sectors, with consumer staples advancing 0.6% and healthcare climbing about 0.4%.

Futures Market Reaction

Despite the day's losses, stock futures indicated a modest rebound:

• Dow Futures: Increased by 72 points (approximately 0.2%).

• S&P 500 Futures: Rose 0.2%.

• Nasdaq 100 Futures: Advanced 0.3%.

Upcoming Tariffs on Mexico and Canada

President Donald Trump confirmed that 25% tariffs on imports from Mexico and Canada would commence on Tuesday, citing insufficient progress in addressing issues such as fentanyl smuggling and migration.

He stated there was "no room left" for further negotiations.

International Responses

• Canada: Prime Minister Justin Trudeau announced plans to retaliate with 25% tariffs on approximately $100 billion worth of U.S. goods, emphasizing the country's readiness to implement these measures.

• Mexico: President Claudia Sheinbaum indicated that Mexico would await the final U.S. decision before responding but has prepared countermeasures.

Economic Implications

Economists warn that the new tariffs could exacerbate inflation, potentially leading to higher consumer prices and a slowdown in economic growth. This contrasts with the low-inflation environment during Trump's first term, where tariff impacts were relatively muted.

Investor Outlook

Market participants remain cautious as they assess the potential impact of the tariffs on the global economy. The modest uptick in stock futures suggests a tentative optimism, but analysts advise vigilance amid ongoing trade tensions and their possible effects on market stability.

This article will be updated as new information becomes available.