Stock futures slide on more Trump tariff letters, but are off worst levels of session: Live updates

U.S. equity futures slid early Monday after President Donald Trump threatened high tariffs on more countries over the weekend, but were off the worst levels as investors bet those duties will eventually be negotiated down. Investors were also optimistic about second-quarter earnings season which ramps up this week.

Futures for the Dow Jones Industrial Average fell 140 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures also dropped 0.3% each. Dow futures were down more than 200 points at one point overnight.

President Donald Trumpsaid Saturday that the U.S. will impose 30% tariffs on the European Union and Mexico starting Aug. 1. Leaders of the EU and Mexico indicated they intend to keep talking with the Trump administration this month in an attempt to agree on a lower rate.

The announcement comes ahead of inflation readings this week, which will give investors a better sense of how the Trump tariffs already in effect are being felt throughout the economy.

“Inflation is here with tariffs. It's just a question of who eats it. Those companies that have pricing power means that consumers are going to eat it. Those companies that don't have pricing power means that companies are going to eat it via a cut in their profit margin,” Peter Boockvar, chief investment officer at Bleakley Financial Group, said Friday on CNBC's “Fast Money.”

Monday's move in futures comes after a negative week for stocks, although the major averages are still near record highs. The S&P 500 dipped 0.3%, its first negative week in three. The Dow fell 1%, breaking a three-week win streak.

Meanwhile, the Nasdaq Composite inched down 0.1%, snapping a three-week winning streak.

Earnings season is set to ramp up later in the week. Major banks, including JPMorgan Chase, will deliver quarterly reports starting Tuesday.

Another potential factor for investors to monitor is the rift between the Trump administration and the Federal Reserve. On Sunday, National Economic Council Director Kevin Hassett told ABC News that President Trump can fire Fed Chair Jerome Powell “if there's cause.”

Trump officials are probing the costs of renovation of the Federal Reserve's main building in Washington, D.C., while the president has repeatedly criticized Powell for not lowering interest rates. The central bank has pushed back against some of the criticisms of the renovation project.

Bitcoin tops $120,000 for the first time

The bitcoin rally continued Monday, with the flagship cryptocurrency topping $120,000 for the first time. Bitcoin was last trading at $122,150.30, up 2.5% on the day, putting its year-to-date advance at 30.4%.

Asia-Pacific markets close mixed

Asia-Pacific ended the day mixed Monday.

Hong Kong's Hang Seng Index added 0.26% to close at 24,203.32, while the mainland'sCSI 300 index was flat at 4,017.67.

Japan's Nikkei 225 benchmark lost 0.28% to close at 39,459.62, while the broader Topix index was flat at 2,822.81.

Meanwhile, South Korea's Kospi index increased by 0.83% to close at 3,202.03, while the small-cap Kosdaq moved down 0.14% to 799.37.

Australia's S&P/ASX 200 benchmark ended the day 0.11% lower at 8,570.4.

Over in India, the 50-stock benchmark Nifty 50 was down 0.53% while the Sensex index dropped 0.46% as of 2 p.m. Indian Standard time.

Major banks highlight busy week of earnings

The second-quarter earnings season begin in earnings this week. Here are the dates of some of the notable reports:

• Tuesday: JPMorgan Chase, Wells Fargo, Citigroup
• Wednesday: Johnson & Johnson, Bank of America, Goldman Sachs, Morgan Stanley, United Airlines
• Thursday: PepsiCo, Netflix
• Friday: American Express

S&P 500, Nasdaq Composite with 0.5% of record highs

Here is how the major averages performed last week and where they sit in terms of their record highs:

The S&P 500 fell -0.31% for its first negative week in 3

• The index is -0.48% off its record high

The Nasdaq Composite fell -0.08%, breaking a three-week win streak

• The index is 0.34% off its record high

The Dow fell -1.02%, snapping a three-week win streak

• The average is 1.56% off its record high.

Trump says Mexico, EU will face 30% tariff on Aug. 1

President Donald Trump on Saturday said that Mexico and the European Union will face a 30% tariff rating starting Aug. 1. This continues the trend of Trump releasing letters announcing tariff rates unilaterally, and hits two of the United States' biggest trading partners.

Leaders of both Mexico and the EU indicated that they plan to continue talking to the Trump administration ahead of Aug. 1 and are looking for a lower rate. European Commission President Ursula von der Leyen said Sunday the EU would delay its own tariffs, which were set to take effect on Monday, the Associated Press reported.

Stock market futures open lower

Equity futures were lower when trading resumed on Sunday evening in New York. Dow futures were down 200 points, or about 0.5%.