U.S. stock futures were steady at the start of the week, following a sharp selloff on Wall Street that concluded the previous week. The Dow Jones, S&P 500, and Nasdaq futures hovered near the flatline as investors responded to two major themes: the introduction of new U.S. tariffs and weaker-than-expected jobs data.

Friday saw notable declines across all major indexes. The Dow dropped over 540 points, while the S&P 500 and Nasdaq also posted significant losses. This marked the largest single-day drop for the S&P 500 since April, capping a week in which the Dow shed 2.9%, the S&P 500 fell 2.4%, and the Nasdaq lost 2.2%. The pullback comes after a streak of record highs in July, where the market enjoyed historical stability.

The sharp market reaction was triggered by the Trump administration’s decision to impose sweeping reciprocal tariffs, ranging from 10% to 41% on dozens of U.S. trading partners. This move raised uncertainty around trade relationships and future corporate earnings, shaking investor confidence.

Adding to the cautious mood was the latest jobs report, which showed that U.S. payrolls increased by only 73,000 in July—falling short of expectations. Previous months’ numbers were also revised downward, highlighting ongoing softness in the labor market and fueling concerns about economic momentum.

Looking ahead, investors are also grappling with uncertainty surrounding the timing of the next Federal Reserve rate cut. August has historically been a challenging month for equities, and with both trade tensions and labor market concerns top of mind, markets are likely to remain volatile in the near term. Despite the recent pullback, the S&P 500 remains up over 20% compared to the same time last year, reflecting the strength of the market rally earlier in 2025.