Wall Street is waking up to a dose of caution this morning as optimism surrounding the U.S. economy’s resilience to tariffs begins to falter. Futures tied to the Dow Jones Industrial Average, the S&P 500, and the tech-heavy Nasdaq 100 all dipped slightly overnight, each down by about 0.1% as investors reassessed the economic outlook amid growing trade tensions and mixed economic data.

This hesitation comes just a day after key reports painted a less-than-rosy picture of the U.S. economy. Private sector hiring slowed sharply, and the services sector showed signs of contraction, both red flags for a market that had hoped it could ride out the storm of President Trump’s ongoing tariff campaign.

The slowdown prompted a fresh call from the President, urging the Federal Reserve to cut interest rates in an effort to counter the economic headwinds.

Meanwhile, on the corporate front, investors are keeping a close watch on upcoming earnings. Lululemon and Broadcom are both slated to release their quarterly results today, critical updates as the earnings season draws to a close.

Also on the radar: weekly jobless claims data will be released later this morning, offering an early look at employment trends before the all-important May jobs report arrives on Friday.

With markets on edge and uncertainty rising, all eyes remain on the Fed, trade developments, and whether corporate performance can calm increasingly jittery investors.

Reporting by Katy Moore.