TLDR
- US stock futures are down Monday, with the Nasdaq falling 0.7% in pre-market trading
- US-Canada trade talks broke down over the weekend, with Canada vowing to retaliate with like-for-like tariffs
- Treasury Secretary Scott Bessent is set to announce new economic sanctions against Iran Monday afternoon
- Nvidia reports earnings Wednesday in a closely watched moment for AI sector spending
- 10-year Treasury yields remain elevated near 4.7%, keeping pressure on markets
US stock futures are in the red Monday morning as traders face a busy week packed with geopolitical risk, major earnings, and a key Federal Reserve event.
The Nasdaq 100 fell 0.7% in pre-market trading. The S&P 500 futures dropped 0.3%, and Dow futures were also down 0.3%.
US-Canada Trade Talks Break Down
Trade tensions with Canada are adding to the pressure. Talks between the US and Canada collapsed over the weekend, and the US moved to impose new tariffs on Canadian goods.
🇺🇸🇨🇦 UPDATE: The 50% U.S. tariffs on $20 BILLION of Canadian goods are now officially in effect.
Canada's PM Carney has set September 8 for dollar-for-dollar retaliation targeting U.S. steel, dairy, appliances, agricultural equipment and electronics.
No further talks are… https://t.co/3ttNGaByNS pic.twitter.com/X03UFPDKBt
— Coin Bureau (@coinbureau) August 23, 2026
Canadian Prime Minister Mark Carney suspended negotiations in response. He vowed to hit back with like-for-like tariffs on American goods.
All three major indexes finished last week lower. Concerns over long-term Treasury yields, the national debt, and geopolitical tensions in energy markets have been weighing on sentiment.
The 10-year US Treasury yield edged down slightly Monday, falling 3.4 basis points to 4.702%. The 30-year yield, which hit a 19-year high of 5.337% last week, was last seen at 5.236%.
Oil prices were also moving. Brent crude fell 1.2% to $91.52, while West Texas Intermediate dropped 1.8% to $85.53. Crude had surged more than 5% last week.
Iran Sanctions and the Middle East
The Trump administration is preparing to escalate economic pressure on Iran. Treasury Secretary Scott Bessent described the planned measures in a Financial Times op-ed as “an economic D-Day, the single greatest financial offensive ever marshalled against an adversary.”
Bessent was scheduled to hold a press conference at 2 p.m. Eastern time Monday to announce details of the new restrictions on Tehran.
The Strait of Hormuz, a key oil shipping route, remains closed to normal traffic due to ongoing tensions in the region. There is no clear timeline for when it might reopen.
Nvidia Earnings in Focus
Nvidia reports earnings after the bell Wednesday. The chipmaker is seen as a key indicator of AI capital spending, and the results are expected to set the tone for the broader tech sector.
Marvell Technology is also due to report Thursday. Its figures will add more detail to the picture on AI infrastructure spending.
The Federal Reserve’s annual Jackson Hole Symposium starts Thursday. Investors will be watching for any signals on interest rate direction from Fed officials.
Markets are heading into the week with multiple pressure points stacked up at once. Elevated yields, trade disputes, Middle East tensions, and major earnings reports are all in play.
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