U.S. equity futures inched lower in early Tuesday trading, while Treasury bonds rallied, as investors shunned risky assets amid growing concerns over the impact of President Donald Trump’s tariff and cost-cutting plans on the world’s biggest economy.
Stocks ended lower on Monday, with both the S&P 500 and the Nasdaq extending their losing streaks to a third consecutive session, amid a broader retreat in big tech stocks and more indications of a fading growth prospects tied to Trump policies.
The President then doubled-down on his threat to introduce sweeping tariffs on goods from Canada and Mexico next week, telling reporters in Washington they’re “going forward on time, on schedule” following a 30-day delay earlier in the month.
Bloomberg News, meanwhile, reported that the administration is seeking to scrap Biden-era rules on tech exports to China with newer, tougher regulations, adding to a late Friday move that limits investments from that country into certain U.S. sectors, including tech.Â
The collective actions, alongside Trump’s desire to slash more than 200,000 federal employees over the coming months through his cost-cutting effort with Tesla (TSLA)  CEO Elon Musk, sparked a sharp pullback in Treasury bond yields and a retreat from global risk assets,
Benchmark 10-year Treasury not yields were marked 10 basis points lower from Monday levels at 4.341% heading into the start of the New York trading session, while 2-year notes fell 11 basis points to 4.125% following a solid auction of $69 billion in new paper yesterday.
On Wall Street, stocks are set to extend their recent slide, with futures contracts tied to the S&P 500 suggesting a 12 point opening bell decline and those linked to the Dow Jones Industrial Average pried for a modest 35 point pullback.
The tech-focused Nasdaq, meanwhile, is called 76 points lower with Nvidia (NVDA) down another 2% heading into its fourth quarter earnings report after the close of trading on Wednesday.Â
Related: Analyst reworks Nvidia stock price target with Q4 earnings on deck
In overseas markets, Europe’s Stoxx 600 was marked 0.31% higher in mid-day Frankfurt trading, while Britain’s FTSE 100 rose 0.35% in London.Â
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Overnight in Asia, traders returned from Monday’s holiday in Japan to mark the Nikkei 225 1.39% lower on the session, with tech stocks leading the declines, to drag the index to is lowest level in three months.
The new U.S. investment restrictions, as well as reports of tougher tech export rules, dragged China stocks lower across the board and pulled the regional MSCI ex-Japan index to a 1.38% loss into the close of trading.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
