American stock market futures experienced a decline on Sunday in anticipation of President Trump implementing a wide-ranging set of tariffs this week. Trump has dubbed April 2 as “Liberation Day.” Dow Jones Industrial Average (YM=F) futures showed a drop of 0.4%, while S&P 500 (ES=F) and Nasdaq 100 futures (NQ=F) fell by 0.7% and 1.1%, respectively.

The stock market looks to end a challenging month and quarter, with the S&P 500 and Nasdaq having negative finishes for five out of the last six weeks. Last week saw declines in the S&P 500 by 1.5%, the Dow by 1%, and the Nasdaq Composite by 2.5%. On Friday, there was a significant drop following an unexpected increase in the Fed’s preferred inflation measure, "core" PCE.

The economy continues to face uncertainty due to tariffs, with Trump planning new tariffs on various trading partners and a 25% tax on foreign-made cars. Investors are eager for more clarity on the impacted countries, as the uncertainty surrounding these reciprocal tariffs has dampened market sentiment. There are reports indicating that Trump is inclined to impose even more substantial tariffs.

Apart from tariffs, this week investors will focus on labor market data, particularly the March jobs report and updates on private payrolls, job openings, and the manufacturing and services sectors. There are limited significant earnings announcements scheduled for the week.