Wall Street Eyes Fed Minutes as Trump Tariff Threats Rattle Markets

U.S. stock index futures held steady Tuesday evening after a subdued trading session, as escalating trade tensions under President Donald Trump kept investor sentiment cautious. S&P 500 Futures were flat at 6,272.25, Nasdaq 100 Futures hovered at 22,905.25, and Dow Jones Futures stood at 44,500.00 by 19:30 ET.

The market remains on edge after Trump threatened steep tariffs on key imports, including 50% duties on copper and up to 200% on pharmaceuticals. The president sent letters to multiple major economies, signaling further tariffs may follow. Although the tariff start date was delayed to August 1, the threats weakened hopes for near-term trade deals, especially with South Korea and Japan. China also warned the U.S. against restarting a trade war, intensifying global trade uncertainty.

Wall Street struggled with the uncertainty, with the S&P 500 slipping 0.1% to 6,225.52, the Dow falling 0.4% to 44,240.76, and the NASDAQ Composite closing flat at 20,418.46. Investors are also closely watching for second-quarter earnings, which kick off next week.

Attention now turns to the Federal Reserve’s June meeting minutes, due Wednesday. The report may offer clues on interest rate policy, especially after strong jobs data last week tempered expectations for rate cuts. Trump has repeatedly called for lower rates and criticized Fed Chair Jerome Powell. While Trump’s Council of Economic Advisers claimed tariffs haven’t yet driven inflation, economists warn the delayed implementation could still impact consumer prices.

With earnings season approaching and tariff uncertainty mounting, markets remain highly sensitive to policy developments. Investors will be closely monitoring the Fed’s stance and any further trade policy shifts from the Trump administration.