Dow Jones futures slip as markets eye Trump-Zelenskyy meeting, expanded US tariffs

• Dow Jones futures struggle due to market caution ahead of Trump-Zelenskyy meeting.
• The Trump administration expanded 50% tariffs on steel and aluminum imports, adding 407 new product codes.
• US stocks indexes hit fresh record highs as recent US data support the case for a Fed rate cut in September.

Dow Jones futures fall during early European trading on Monday, ahead of the opening of North American markets, trading below 45,000, down by 0.2%. Moreover, S&P 500 futures decline 0.1% to trade near 6,450, while Nasdaq 100 futures remained subdued near 23,800.

US stock futures struggle ahead of a meeting between US President Donald Trump and Ukrainian leader Volodymyr Zelenskyy due later in the day. However, market sentiment could improve if there are any positive developments toward ending the Ukraine-Russia war. Moreover, Trump administration has broadened its 50% tariffs on steel and aluminum imports, including 407 new product codes in the US Harmonized Tariff Schedule. Trump also stated that he intends to issue further announcements on steel tariffs, along with new levies aimed at semiconductor imports.

President Trump may urge Zelenskyy to accept a swift settlement after his Friday talks with Russian President Vladimir Putin, which focused on Moscow's demand that Ukraine surrender territories. The meeting will also feature European Commission President Ursula von der Leyen, French President Emmanuel Macron, and NATO Secretary General Mark Rutte.

The Dow surged 1.71%, the S&P 500 advanced 0.94%, and the Nasdaq Composite appreciated 0.81% last week. All three indexes reached fresh record highs as recent United States (US) economic data support the case for a Federal Reserve (Fed) rate cut in September.

Traders are awaiting Fed Chairman Jerome Powell's comments at this week's Jackson Hole meeting to gain further cues regarding the path of interest rate cuts. It is worth noting that lower borrowing costs could stimulate economic activity in the United States, the world's largest economy.