Stock Market Today: Live Updates

U.S. stock futures declined Sunday night after President Donald Trump confirmed that tariffs are scheduled to take effect on August 1, not July 9.

Dow Jones Industrial Average futures decreased by 146 points, or 0.32%. S&P 500 futures and Nasdaq 100 futures declined by 0.39% and 0.42%, respectively.

Tariff Timeline Clarification

In a discussion with reporters on Sunday, President Trump and Commerce Secretary Howard Lutnick clarified the tariff schedule. Lutnick stated, "Tariffs go into effect Aug. 1. But the president is setting the rates, and the deals, right now," and President Trump agreed with this statement.

Earlier, Treasury Secretary Scott Bessent stated in a CNN interview that tariffs would return to April 2 levels on August 1 if there is no progress on reaching an agreement with the U.S.

Market Expectations and Deadlines

Investors had anticipated that tariff rates would take effect this week. The initial 90-day extension on the April reciprocal tariffs for most U.S. trading partners was set to expire on Tuesday. Additionally, the deadline for the U.S. to reach an agreement with the European Union before EU goods could be subject to duties of up to 50% was on Wednesday.

Recent Market Performance

Last week, the S&P 500 and Nasdaq Composite closed at all-time highs. This performance was partly attributed to expectations that the administration would not implement the most severe tariffs announced in April. Recently, the White House described the July trade deadlines as "not critical."

"Ultimately, trade negotiations usually take a long time to negotiate; free trade arrangements the US negotiated have taken an average of 3 years," Rajeev Sibal, senior global economist at Morgan Stanley, wrote last week. "While the negotiations that are currently taking place are likely to be narrower than a full fledged free trade agreement, the historical precedent remains informative."

Investor Sentiment

Some investors are concerned that equity markets at record highs may become more volatile as updates on trade emerge, particularly if negotiations result in higher tariffs than expected. Others believe the market rally could continue, anticipating that companies will meet or exceed expectations during the upcoming earnings season if they effectively manage tariff-related challenges.

"I agree with anybody who says that, 'Look, we've reshaped some of the economic flows around tariffs,' but that's an upside story because if it plays out better, that's an earnings surprise," Tom Lee, head of research at Fundstrat Global Advisors, said on CNBC's "Closing Bell" on Thursday. He added: "This is the most hated V-shaped rally."

Recent Trade Agreements

To date, the U.S. has reached agreements with a limited number of countries. In May, the U.S. and the United Kingdom agreed to maintain a 10% tariff rate. Last week, an agreement with Vietnam reduced tariffs on many goods to 20% from 46%.