US and European futures are trading lower as investors are concerned about President Trump next action related to tariffs which suggests tariff related loom. There is no doubt that the President secured the biggest victory last week by signing the “Big beautiful” bill which many thought that it may not come to life. However, going into this, the concerns are mainly focused on tariffs. 

The White House signals its plans to place tariffs across a broad group of nations, specifically the BRICS bloc, but gives no details. As the week will unfold, we are likely to get more information. 

In short, the markets are reacting this morning to two primary catalysts. One is geopolitical uncertainty as a result of the postponed but confirmed tariff timeline. Although the short-term postponement reduces short-term economic disruption, it also leaves the markets in the unknown, with investors wondering which nations will come in for it or how major trading partners such as the EU or China will respond in turn. 

Two, the commodity space had something to do with it: OPEC+ rolled out a hawkish increase in production, which has taken oil prices 1% down. This not only dampers energy stocks but also indicates something more conservative in terms of global demand, especially in light of trade spats. 

Trump's belligerent tone has brought in some policy uncertainty, as his weekend comments ranging from heavy tax cuts to new tariffs spooked investors craving policy guidance. 

Most traders think this pullback in futures amounts to some market expectations realignment, not just in terms of tariffs but in the broader orientation of U.S. trade and fiscal policy. Investors will have to track tariff announcements and potential retaliations closely, but defensive sectors and risk hedges in the form of gold should act in the short term as clarity is scarce.

Stock Market Wrap 

• Nasdaq Composite: 556.22, unchanged, but momentum is still restricted. The index is also known as US 100 CFD index among CFD brokers.
• Dow Jones Industrial Average: 448.09, higher modestly on advances in defensives and industrials.. The index is also known as US 30 index.
• Russell 2000: 223.08, reflecting guarded optimism in the small-cap market. 

Stocks 

Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla, the S&P 500's "Magnificent Seven," continue at the forefront. Nvidia and Meta are driving the charge, fueled by adoption of artificial intelligence and rebound in digital advertising, and Tesla and Apple have struggled, down 19% and 14% YTD, respectively. Relative underperformance stems from pressure on their margins and rotation by investors into better-valued prospects for growth.

GOLD PRICES 

Spot gold is at $3,314 an ounce, within a narrow range of $3,312 and $3,323, as markets react to Washington policy news. President Trump’s action to delay near-term tariffs, while planning to send tariff letters to more than a dozen countries by August 1, provided temporary support to safe-haven assets. However, the absence of an immediate action and widespread risk-on tone have capped gold’s gains, resulting in a modest retreat from last week’s highs.

Without any new economic news for the day, market mood remains in sync with political headlines. Approval of the “one big beautiful bill”—with huge tax cuts—is reigniting fears about United States' fiscal health. Although this helps maintain gold's status as hedge against future inflation and increased debt levels, short-term prospects remain muted for gold. Traders are likely to react to major inflation and GDP numbers coming this week, keeping gold in the process of consolidation. Most traders are anticipating trading in gold between $3,300 and $3,350 in the short run. Larger price action will probably await some shift in geopolitical risks or inflation expectations, and surprises most likely will prompt immediate market reaction.