(Reuters) -Wall Street futures slipped on Friday, as investors took stock of an appeals court decision to undo a prior ruling that had blocked most of U.S. President Donald Trump’s tariffs, heading into the last trading day of a solid month for equities.
The S&P 500 and the Nasdaq are on pace for their best monthly showing since November 2023, while the Dow is also set for a near 4% monthly advance.
Stocks have seen immense volatility this month on Trump’s on-and-off tariff moves, though the S&P 500 has rebounded from its April low and now sits about 4% lower from its all-time high hit in February.
U.S. equities had initially rallied on Thursday when the Court of International Trade ruled late on Wednesday to effectively block most levies imposed since January, but did not address some industry-specific tariffs.
However, a federal appeals court on Thursday temporarily reinstated most of the tariffs and ordered the plaintiffs in the cases to respond by June 5 and the administration by June 9.
“This week’s courtroom drama has added another layer of uncertainty to what was already an unsettling series of events,” Richard Hunter, head of markets at interactive investor, said in a morning note.
Hopes of more trade deals between the U.S. and major trading partners, along with upbeat earnings and tame inflation data, have been some of the main drivers of gains in equities this month.
U.S. Treasury Secretary Scott Bessent stated that U.S. trade talks with China are “a bit stalled” and getting a deal over the finish line will likely need the direct involvement of President Trump and Chinese President Xi Jinping.
At 5:14 a.m. ET, Dow E-minis were down 31 points, or 0.07%, S&P 500 E-minis were down 8.5 points, or 0.14% and Nasdaq 100 E-minis were down 36.5 points, or 0.17%.
Most megacap and growth stocks inched lower in premarket trading, with Nvidia off 0.7% after gaining in the last session on reporting robust quarterly revenue growth.
Chipmaker Marvell Technology shed 3.9% despite forecasting second-quarter revenue above estimates.
Ulta Beauty gained 8.6% after the cosmetics retailer raised its annual profit forecast after beating quarterly results.
Zscaler advanced 3.2% as the cloud security firm raised its annual profit and revenue forecasts and named Kevin Rubin as its chief financial officer.
Later in the day, the Personal Consumption Expenditure data – the Fed’s favored inflation indicator – is scheduled for release at 8:30 a.m. ET, which could shed more light on the U.S. Federal Reserve’s interest rate trajectory.
Trump called Fed Chair Jerome Powell to the White House late on Thursday for their first face-to-face meeting since he took office in January and told the central bank chief he was making a “mistake” by not lowering interest rates.
Traders currently see at least two 25 basis points of cuts by the end of the year, according to data compiled by LSEG.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Maju Samuel)
