US stock futures are paring losses on Monday as JPMorgan’s CEO urges a quick resolution to the turmoil over Donald Trump’s tariffs and traders boosted Fed rate cut bets.

Market Snapshot

At 7:50 a.m. ET, Dow e-minis were down 854 points, or 2.22%, S&P 500 e-minis were down 131.25 points, or 2.57%, and Nasdaq 100 e-minis were down 513.75 points, or 2.93%.

Pre-Market Movers

Big Tech Stocks - Tesla declined 6.7% in premarket trading after dropping 10% on Friday to $239.43 and pushing shares of the electric-vehicle maker down 50.1% from its all-time closing high of $479.86 last December. Tesla dropped 9.2% last week, marking the stock’s 10th down week in the past 11. Wedbush analyst Dan Ives, a longtime Tesla bull, reduced his price target on the stock to $315 a share from $55o, with Ives writing in a research note that a brand crisis created by CEO Elon Musk, combined with the Trump tariffs, equaled a “perfect storm for Tesla.” Ives still rates the shares a Buy.

Apple fell 3.8% in premarket trading after the iPhone maker declined 7.3% on Friday. Wedbush’s Ives cut his price target on the stock to $250 from $325. Apple’s market cap sank $443.5 billion last week, the largest weekly market cap decline on record, according to Dow Jones Market Data. The stock dropped 13.6% last week, its worst week since the week ended March 30, 2020, when it plummeted nearly 18%. A large majority of Apple’s products are assembled in China, which retaliated Friday to Trump’s tariffs by launching a 34% levy on all imported goods from the U.S., effective Thursday.

Shares of artificial-intelligence chip maker Nvidia were down 5.4% in premarket trading. Nvidia fell 7.4% on Friday and 14% for the week, the stock‘s worst week since late January when it tumbled almost 16%. Shares have fallen 30% this year.

Meanwhile, Amazon fell 3.4%, Meta fell 3.2%, Alphabet fell 2.4%, and Microsoft fell 2.3%.

Chinese ADRs - U.S.-listed shares of Chinese companies tumbled in premarket trading as stocks in Shanghai fell 7.3% after China said it would hit all U.S. goods with an additional 34% tariff. Direxion Daily FTSE China Bull 3X Shares (YINN) fell 18%; XPeng fell 12%; NetEase and Li Auto fell 9%; Alibaba and NIO fell 7%; JD.com and PDD Holdings fell 6%; Baidu fell 5%.

Crypto Stocks - Crypto stocks tanked in premarket trading on Monday as tariff war pain battered cryptocurrency assets. MARA Holdings fell 11%; Strategy fell 10%; Riot Platforms and Coinbase fell 8%.

Bank Stocks - Bank stocks plunged again Monday as global recession fears mounted. A number of major U.S. banks are scheduled to kick off earnings season Friday. Their stocks plunged last Thursday and Friday with the group having its worst two-day decline since March 2020. “Tariffs have inflamed fears of a potential recession that would likely lead to reduced loan demand and more delinquencies,” said Gene Goldman, chief investment officer of wealth manager Cetera Financial Group, last week. Goldman Sachs fell 3.2% in premarket trading, Morgan Stanley fell 2.9%, Citigroup fell 2.2%, JPMorgan Chase was down 1.8%, and Wells Fargo was falling 1.6%.

Eli Lilly, Novo Nordisk, Hims & Hers Health - Eli Lilly fell 4.9% and U.S.-listed shares of Novo Nordisk were down 1.7% after the Trump administration said Friday thatMedicare and Medicaid won’t be expanding coverage for anti-obesity medications. A proposal issued late last year by the Biden administration would have allowed Medicare and Medicaid to pay for drugs such as Lilly’s Zepbound and Novo Nordisk’s Wegovy, according to The Wall Street Journal. Health and wellness platform Hims & Hers declined 8.6%.

Market News

Trump Says There Won't Be a Deal With China Unless the Trade Deficit Gets Solved

On Air Force One Sunday evening returning to Washington from Florida, President Donald Trump told reporters that he wants to solve the trade deficit with China. “And unless we solve that problem, I’m not going to make a deal,” he said.

Trump said he had spoken to European and Asian world leaders over the weekend, adding that “they’re dying to make a deal.”

Earlier in the day, Treasury Secretary Scott Bessent brushed aside worries about the longer-term effects of the Trump administration’s sweeping tariffs, which sparked a sharp global stock market selloff last week, telling NBC’s Meet the Press there’s “no reason that we have to price in a recession.”

“This is an adjustment process,” Bessent said Sunday. “We’re gonna hold the course.”

Goldman Sachs Raises Odds of US Recession to 45%

Goldman Sachs has raised the odds of a U.S. recession to 45% in the next 12 months, joining other investment banks in revising their forecast as fears of a trade war grip markets after sweeping tariffs from U.S. President Donald Trump.

Goldman raised the probably of a recession in the next 12 months from a previous estimate of 35% following a sharp tightening in financial conditions and a rise in policy uncertainty that is likely to depress capital spending by more than what Goldman had previously assumed.

Several investment banks raised their recession risk forecasts last week, with J.P. Morgan putting the odds of a U.S. and global recession at 60%.

Jamie Dimon Says Tariff Policy Issues Must Be Resolved Quickly

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon urged a quick resolution to the uncertainties sparked by President Donald Trump’s tariffs and warned against a potentially “disastrous” fragmentation of America’s long-term economic alliances.

“The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse,” Dimon wrote in his annual shareholder letter. In the near term, “we are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”

He cited a raft of lingering questions around the new policy, including potential retaliatory actions by other countries, the impact on investments and capital flows, and the possible effect on the US dollar. Still, he wrote that there are “of course” some legitimate reasons for the action, and that he hopes “the long-term effect will have some positive benefits” for the US.