US Equity Futures Drop Amid Global Trade Tensions

US equity futures moved lower pre-bell as the global trade situation weighed on investor sentiment. The Wall Street situation was monitored as US futures slipped after Trump's steel tariff threat. Hedge funds bought stocks at the quickest pace since November 2023, according to Goldman Sachs. Digital banking startup Chime targeted a $9.5 billion valuation in its US IPO.

U.S. equity futures moved lower before the market open on Monday, June 2, as global trade uncertainty weighed on investor sentiment. Futures for the Dow, S&P 500, and Nasdaq all declined following President Donald Trump's announcement of plans to double tariffs on imported steel and aluminum. This move, set to take effect on Wednesday, has increased market volatility and uncertainty around U.S. trade policies [1].

The S&P 500, Dow, and Nasdaq futures were down 0.2%, 0.31%, and 0.44% respectively at 7:34 a.m. ET. Shares of U.S. steel companies, such as Cleveland-Cliffs, Nucor, and Steel Dynamics, rose in premarket trading, while automakers like Ford and General Motors fell. The increased tariffs risk deepening Trump's global trade war and could dampen the market enthusiasm that followed his more conciliatory trade stance last month [1].

In contrast, hedge funds bought global equities at the quickest pace since November 2024, according to a report by Goldman Sachs. This was particularly evident in technology companies, which attracted the highest interest among hedge funds. The S&P 500 and Nasdaq both had their best monthly performances in decades, rising by just over 6% and 9.6% respectively in May [2].

Meanwhile, digital banking startup Chime targeted a $9.5 billion valuation in its U.S. IPO, with the company aiming to become the financial utility layer of the internet. Circle, the issuer of the USDC stablecoin, also filed for an IPO on the New York Stock Exchange, hoping for a valuation of $5.65 billion [3].

The Federal Reserve's Chair Jerome Powell is expected to present remarks later in the day, which could provide further insights into the central bank's stance on interest rates and the potential impact of tariffs on the economy. Investors will also be watching for the release of the S&P Global U.S. manufacturing PMI and the ISM's manufacturing activity index, as well as the crucial nonfarm-payrolls report on Friday.

References:
[1] Reuters. (2025). Wall Street futures slip after Trump's steel tariff threat. Retrieved from [https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3S50M7:0-wall-street-futures-slip-after-trump-s-steel-tariff-threat/](https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3S50M7:0-wall-street-futures-slip-after-trump-s-steel-tariff-threat/)
[2] Reuters. (2025). Hedge funds buy stocks at the quickest pace since November 2024. Retrieved from [https://www.reuters.com/business/finance/hedge-flow-hedge-funds-buy-stocks-quickest-pace-since-nov-2024-goldman-sachs-2025-06-02/](https://www.reuters.com/business/finance/hedge-flow-hedge-funds-buy-stocks-quickest-pace-since-nov-2024-goldman-sachs-2025-06-02/)
[3] PYMNTS. (2025). Circle IPO goals hinge on becoming digital money infrastructure layer. Retrieved from [https://www.pymnts.com/news/ipo/2025/circle-ipo-goals-hinge-becoming-digital-money-infrastructure-layer/](https://www.pymnts.com/news/ipo/2025/circle-ipo-goals-hinge-becoming-digital-money-infrastructure-layer/)