As Dollar Halts Decline, Stocks Drop on Trade Jitters – Europe Market Wrap

US stock futures dipped as concerns over American trade policies clouded sentiment. The Dollar recovered losses, while precious metals climbed.

S&P 500 futures fell 0.5% as investors assessed the potential consequences of a new 15% worldwide tariff after the Supreme Court overturned Trump’s emergency levies. The Dollar reversed a 0.3% decline. Gold rose following three consecutive weekly advances. Bitcoin temporarily fell below $65,000.

The fresh tariff debate has given traders another focal point in markets already rattled by concerns about AI and Middle East tensions. In what appears to be an unsettling start to the week, investors must also deal with Trump’s State of the Union address on Tuesday and Nvidia’s earnings the next day.

Investors are now assessing how the 15% worldwide tax will effect countries with current trade agreements, as well as whether the new charges can withstand judicial scrutiny. The EU is preparing to halt the ratification of its trade agreement with the US while it seeks additional information from the Trump administration.

Treasuries rose modestly, with the 10-year yield decreasing 1 bps to 4.07%. Natural gas prices in the US soared as a winter storm blasted across the Northeast. European stocks dropped 0.3%.