Markets Slip as Tariff Confusion and Inflation Data Keep Traders Cautious

​U.S. stock futures dipped Friday morning as legal uncertainty swirled around President Trump’s sweeping tariffs, and investors braced for new inflation data that could signal whether prices are set to rise again.

Dow futures dropped 0.1%, the S&P 500 fell 0.2%, and the Nasdaq 100 slipped 0.3%, as Wall Street tried to make sense of a confusing sequence of court rulings. On Thursday, a trade court had blocked most of Trump’s tariffs, calling them illegal. But an appeals court temporarily paused that ruling just a day later—leaving the tariffs in limbo for now.

The White House has vowed to appeal all the way to the Supreme Court if necessary and is reportedly exploring alternative legal pathways to reinstate or replace the blocked tariffs.

Meanwhile, investors are laser-focused on the April core PCE index, the Fed’s preferred inflation gauge. While this reading may not yet reflect the full impact of tariffs, analysts say it could start to show up in the next release, which covers May.

Also adding pressure: Gap stock tumbled more than 14% after the retailer revealed it expects up to $300 million in tariff-related costs this year, despite strong quarterly sales. The company said it aims to cut that hit in half but didn’t give full details.

Overseas, Asia-Pacific markets slid, with Japan’s Nikkei 225 down 1.1% and Hong Kong’s Hang Seng Index off 1.5%, as regional traders reacted to the tariff uncertainty and rising inflation fears.

​Bottom line: With inflation data on deck and Trump’s tariffs in legal limbo, markets are moving cautiously. Investors are stuck navigating a fog of policy, politics, and price pressures—waiting for clarity that hasn’t arrived yet.