Investing.com - U.S. stock futures inch lower, possibly pointing to a negative start to the trading week for Wall Street. Anxiety remains around President Donald Trump’s tariffs, while concerns have also swirled around the independence of the Federal Reserve following his scathing remarks about Fed Chair Jerome Powell last week. Elsewhere, Netflix (NASDAQ:NFLX) shares tick higher in after hours trading as executives at the streaming giant say they have yet to see an impact from Trump’s levies on consumer spending habits, while Tesla (NASDAQ:TSLA) is reportedly delaying the production launch of its lower-cost Model Y electric vehicle.
1. Futures lower
U.S. stock futures dropped on Monday, with sentiment clouded over by worries over Trump’s trade policies and his criticism of Powell.
Trump has revived threats to oust Powell from the role, accusing him of moving to slowly to bring down interest rates. However, the New York Times (NYSE:NYT) has reported that the president is aware that the action may shake already-jittery global financial markets.
By 03:16 ET (07:16 GMT), the Dow futures contract had fallen by 305 points, or 0.8%, S&P 500 futures had dipped by 44 points, or 0.8%, and Nasdaq 100 futures had slipped by 177 points, or 1.0%.
U.S. markets are coming off a three-day holiday after they were closed for the Good Friday holiday. The main averages were mixed to end the prior session on Thursday, with the outlook for U.S. trade negotiations being weighed against the broader outlook for interest rates.
Last week, Trump suggested that he expects to reach a trade deal with China, the central target of his punishing and erratic levies. The U.S. has slapped China with import duties of at least 145%, while Beijing has hit Washington with tariffs of 125%.
A U.S. accord with Japan over trade has also made "big progress," Trump said, although no deal has yet to be announced yet. The White House has said that it is attempting to secure dozens of deals with individual trading partners during a 90-day pause to Trump’s elevated tariffs on most countries.
2. Netflix shares rise after hours as investors await earnings deluge this week
Shares in Netflix edged higher in extended hours trading after executives at the streaming service suggested they were confident that it could withstand the economic fallout from Trump’s tariffs.
Recent figures have pointed to deteriorating U.S. consumer sentiment and spiking inflation expectations, leading to some increased concerns that price-conscious customers may rein in nonessential spending, including on streaming subscriptions.
But, following better-than-expected quarterly results published after the close of U.S. trading last Thursday, Netflix co-CEO Greg Peters said the group has yet to see a significant change in consumer behavior.
This week will see a large selection of other major companies unveiling their latest returns, as the earnings season for the first quarter of the calendar year gathers pace.
Chipmaker Intel (NASDAQ:INTC), drug manufacturer Merck (NSE:PROR), tech firm IBM (NYSE:IBM), and Pampers-parent Procter & Gamble (NYSE:PG) are also on the earnings docket this week, as well as American Airlines (NASDAQ:AAL). The carrier’s rival United Airlines last week provided a two-pronged outlook for the year, including one scenario forecasting a recession that sparks a deep hit to revenue and profit.
Investors are hoping that these reports -- along with any forecasts for the coming months -- provide some relief in the wake of massive market ructions stemming from Trump’s drive to overhaul U.S. trade policy.
3. Tesla facing delay to cheaper Model Y - Reuters
Tesla is facing a delay of several months to the production launch of a lower-cost model of its Model Y offering, according to Reuters.
The electric carmaker, which has vowed to make more affordable vehicles available at the beginning of the first half of the year, has been banking on this stripped-down SUV to cater to inflation-hit consumers and give some lift to recently tepid demand.
Citing sources with knowledge of the matter, Reuters said that global production of the cheaper Model Y is tipped to start in the U.S. at least a few months later than originally outlined by Tesla. The revised targets range from the third quarter to early next year, Reuters said.
The report comes as Tesla, which is due to announce its latest quarterly results following the closing bell on Tuesday, is already grappling with backlash from some customers to CEO Elon Musk’s close relationship with Trump and his role in a White House drive to downsize the federal government.
4. China keeps loan prime rates steady
The People’s Bank of China held its benchmark loan prime rate steady for the sixth straight month on Monday, signaling Beijing’s preference for boosting economic growth through fiscal measures rather than additional monetary easing.
Set by the PBOC based on input from 18 selected commercial banks, the loan prime rate, or LPR, serves as the benchmark for lending rates across the country.
The PBOC left its one-year LPR at 3.1%, while the five-year LPR, which is used to set mortgage rates, was unchanged at 3.6%. Both rates were at record lows, following a slew of cuts over the past three years.
However, analysts suggest that the PBOC now has relatively limited room to reduce the LPR further, as previous rate cuts have offered only short-term relief for the economy. Attention has since shifted toward increased fiscal support to boost domestic consumption and combat the potential impact of steep U.S. tariffs.
5. Gold’s new record
Gold prices hit a new record high on Monday, supported by fears over a tit-for-tat trade war between the U.S. and China as well as a weakening dollar against a basket of currency peers.
Spot gold had risen by 2.0% to $3,393.13 by 03:07 ET, after having notched an all-time peak of $3,391.62 earlier in the session. Gold futures expiring in June also surged by 2.3% to $3,404.71.
Underpinning the jump in bullion was a slide in the U.S. dollar index to a three-year low, which can make the yellow metal less expensive for foreign buyers and drive up demand. Gold is also seen as a relative safe haven during times of economic uncertainty or market upheaval.
China on Monday said countries should refrain from reaching trade deals with the U.S. at its expense, as tensions rise between the world’s two largest economies. Trump, who recently omitted China from a partial 90-day pause to his sweeping reciprocal tariffs, is reportedly placing pressure on nations to curb trade with China in return for reduced levies or exemptions.