U.S. stock futures fell as uncertainty over American trade policy clouded sentiment. The dollar recouped losses while precious metals advanced.

S&P 500

futures dropped 0.2 per cent, with investors assessing the possible fallout from a new 15 per cent global tariff after the Supreme Court struck down

U.S. President Donald Trump

’s emergency levies. The greenback recovered most of a 0.3 per cent drop. Gold climbed after a run of three weekly gains.

Bitcoin

briefly slid below US$65,000.

Tariff questions are adding another dimension to markets already unsettled by concerns over

artificial-intelligence

disruption and brewing Middle East tensions. Monday’s retreat marks an uneasy start to the week, with Trump’s State of the Union address on Tuesday and

Nvidia Corp.

’s earnings the following day likely to serve as major catalysts.

“Markets quickly realized that the ruling might not change much in the near term and will rather increase uncertainties,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “Donald Trump is not known to avoid a fight or give up easily.”

European stocks fluctuated, with the Stoxx 600 paring early losses before slipping again after Novo Nordisk A/S said its Cagrisema next-generation obesity shot fell short of Eli Lilly & Co.’s rival in a trial. Novo slumped as much as 11 per cent in Copenhagen, while Eli Lilly rose 3.6 per cent in U.S. premarket trading.

Nasdaq 100

contracts dropped 0.4 per cent. Tech stocks led gains in Asia amid hopes the tariff ruling will be beneficial for two of the region’s biggest economies — China and India. Treasuries traded flat, with the 10-year yield at 4.08 per cent.

The latest question mark over tariffs could reinforce this year’s pattern of U.S. stocks lagging global peers, with unexpected policy decisions pushing investors toward alternatives. Uncertainty over long-term trade policy and its potential impact on earnings at already elevated valuations is likely to add further pressure on U.S. equities.

Investors are now trying to gauge how the 15 per cent global tariff will affect countries with existing trade deals and whether the new levies can withstand legal scrutiny. The

European Union

is poised to freeze the ratification process of its deal with the U.S. and is seeking more details from the Trump administration.

Senior U.S. officials, including Trade Representative Jamieson Greer, signaled over the weekend that the court decision wouldn’t unravel agreements already negotiated.

“Tariff developments have turned the situation into an unholy mess, prompting far more questions than answers,” wrote Richard Hunter, head of markets at Interactive Investor. “A weekend of confusion may yet have revived the ‘sell America’ trade.”

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“Global trade uncertainty is back as an issue for investors and that’s bad news for U.S. assets. The dollar’s slide has the potential to extend, and the S&P 500’s underperformance relative to peers will become more entrenched as investors price in the impact.”

This story was produced with the assistance of Bloomberg Automation.

Bloomberg.com