Trump targets pharmaceutical sector with new tariffs, pressuring Wall Street ahead of Fed

• Trump threatens pharmaceutical sector with new tariffs
• S&P 500, Nasdaq futures fall ahead of Fed
• Wall Street monitors impact of tariffs on projections

Futures indexes on major US stock exchanges were down on Tuesday (6), as investors await the outcome of the Federal Reserve meeting scheduled for Wednesday. In addition to expectations regarding the direction of monetary policy, the market is reacting to recent statements by Donald Trump, who signaled the possibility of new tariffs on imported medicines.

S&P 500 futures fell 0,8%, while the Dow Jones Industrial Average fell about 0,6%. The tech-heavy Nasdaq 100 led the losses, falling more than 1%.

While the market expects the Fed to keep interest rates unchanged, investors are closely monitoring comments from Jerome Powell. They are paying particular attention to any indication of the impact of recent protectionist measures on the monetary authority's economic projections.

Former President Donald Trump has again toughened his trade stance. Over the weekend, he called for a 100 percent tariff on foreign films and said he did not plan to talk to Xi Jinping in the coming days. On Monday night, he added that he planned to announce tariffs on pharmaceuticals in the next two weeks. The announcement came shortly after signing an executive order aimed at reducing regulatory barriers to the U.S. pharmaceutical industry.

These statements increased caution in the markets and affected shares of large companies. Ford, for example, fell in premarket trading after estimating a US$1,5 billion impact from auto tariffs. The automaker also withdrew its forecasts for 2025. Toymaker Mattel followed suit, withdrawing its projection and announcing price increases on certain products.

Also on Tuesday, the market will follow the quarterly results of companies such as AMD, Super Micro and Rivian, which could add more volatility to the stock markets.