Dow futures drops as US trade uncertainty hurts risk appetite

• Dow futures trade cautiously as investors' risk-appetite has diminished ahead of tariff deadline.
• The White House is expected to announce trade deals with a number of trading partners soon.
• US Bessent warns that those nations will face reciprocal tariffs, which fails to strike a deal.

Dow Futures face a slight selling pressure ahead of opening on Monday after a holiday-stretched weekend. Unites States (US) equities trade lower in a risk-off market sentiment amid uncertainty surrounding the global trade in the countdown to the expire of 90-day tariff pause on July 9.

At the time of writing, S&P 500 futures are down 0.3% to near 6,260. Down futures ease 35 points points, and ticks down to near 44,800.

Investors rush to safe-haven assets, such as the US Dollar (USD), as investors doubt the success of US President Donald Trump's 90-day reciprocal period, which aimed to strike bilateral trade deals without impacting the ongoing trade flow.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, revisits the weekly high around 97.45.

So far, Washington has closed bilateral deals with the United Kingdom (UK) and Vietnam, a limited pact with China, significantly lower than what it promised after sweeping reciprocal tariffs. The White House expressed confidence after announcing tariff pause that it will aim to close "90 deals in 90 days".

Meanwhile, US Treasury Secretary Scott Bessent has expressed optimism that Washington will sign a number of trade deals soon. "There's a lot of foot dragging on the other side, and so I would expect to see several big announcements over the next couple of days," Bessent said in an interview with CNN during the weekend.

Bessent has warned that the US will send letters to those nations, specifying tariff rates, which failed to strike a deal during the 90-day tariff pause period. "President Trump's going to be sending letters to some of our trading partners, saying that, if you don't move things along, then, on Aug. 1, you will boomerang back to your April 2 tariff level.