U.S. Stocks May Come Under Pressure Amid Renewed Tariff Uncertainty

(RTTNews) - Following the pullback seen in the previous session, stocks are likely to see further downside in early trading on Tuesday. The major index futures are currently pointing to a sharply lower open for the markets, with the S&P 500 futures down by 1.0 percent.

Renewed trade uncertainty may weigh on Wall Street after the U.S. Court of Appeals for the Federal Circuit ruled most of President Donald Trump's global tariffs are illegal.

In a 7-4 decision, the appeals court ruled that the power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution.

However, the court delayed implementation of its order until October, giving the Trump administration time to appeal the decision to the Supreme Court.

"All tariffs are still in effect!" Trump said in a post on Truth Social. "If these tariffs ever went away, it would a total disaster for our country."

Treasury yields have surged in reaction to the ruling amid concerns the government may have to repay the billions of dollars already brought in through Trump's tariffs.

Shortly after the start of trading, the Institute for Supply Management is due to release its report on manufacturing activity in the month of August. The manufacturing PMI is expected to inch up to 48.7 in August from 48.0 in July, but a reading below 50 would still indicate contraction.

The Commerce Department is also scheduled to release its report on construction spending in the month of July. Construction spending is expected to rise by 0.2 percent in July after falling by 0.4 percent in June.

After trending higher for several sessions, stocks moved back to the downside during trading on Friday. The major averages all moved lower on the day, with the tech-heavy Nasdaq posting a particularly steep loss.

The major averages ended the day off their lows of the session but still in negative territory. The Nasdaq slumped 249.61 points or 1.2 percent to 21,455.55, the S&P 500 slid 41.60 points or 0.6 percent to 6,460.26 and the Dow dipped 92.02 points or 0.2 percent to 45,544.88.

With the pullback on the day, the major averages closed slightly lower for the week. The S&P 500 edged down by 0.1 percent, while the Dow and the Nasdaq both slipped by 0.2 percent.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index rose by 0.3 percent, while China's Shanghai Composite Index fell by 0.5 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index is down by 1.9 percent, the U.K.'s FTSE 100 Index is down by 0.7 percent and the French CAC 40 Index is down by 0.5 percent.

In commodities trading, crude oil futures are jumping $1.19 to $65.20 a barrel after falling $0.59 to $64.01 a barrel last Friday. Meanwhile, after surging $41.80 to $3,516.10 an ounce in the previous session, gold futures are climbing $26.80 to $3,542.90 an ounce.

On the currency front, the U.S. dollar is trading at 148.85 yen compared to the 147.18 yen it fetched on Monday. Against the euro, the dollar is trading at $1.1617 compared to yesterday's $1.1711.