Stock Futures Melt Down as Trump Rolls Out Tariffs

President Donald Trump instituted a 25% tariff on Mexico and Canada this weekend, as well as 10% levy on China. Wall Street is responding negatively to the move, with Trump also signaling the European Union (EU) would be his next target. Traders are fretting over the possibility of a trade war starting, which could lead to a slow economy and drive inflation higher. Futures on the Dow Jones Industrial Average (DJI) and Nasdaq-100 Index (NDX) are on track for steep triple-digit deficits, while futures on the S&P 500 Index (SPX) are pointed sharply lower as well.

Continue reading for more on today's market, including: .

• Unpacking last week's tech selloff. 
• Back to the basics: How to use married puts. 
• Plus, 3 analyst updates to parse this morning.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts and 1.2 million put contracts exchanged on Friday. The single-session equity put/call ratio fell to 0.49 and the 21-day moving average stayed at 0.60.
2. Constellation Brands Inc (NYSE:STZ) stock is down 4.9% before the open, after the company saw a downgrade at Piper Sandler to "neutral" from "overweight" amid Trump's Tariffs, as well as a price-target cut to $200 from $245. The security is down 28.4% in the last 12 months.
3. Keybanc upgraded Zillow Group Inc (NASDAQ:ZG) shares to "overweight" from "sector weight," with the analyst in question predicting 25% upside thanks to rising home sales. Though ZG is down 1% in premarket trading, it added 97.7% over the last 12 months.
4. Shares of United States Steel Corp (NYSE:X) attracted a downgrade from Morgan Stanley to "equal weight" from "overweight," with the firm citing limited opportunity ahead. X is trading near breakeven ahead of the bell, and carries 21% year-over-year deficit.
5. Key manufacturing and services data due out this week. 

Global Markets Respond to U.S. Tariffs

Japan’s Nikkei and the South Korean Kospi fell sharply on Monday after U.S. President Trump officially signed tariffs on imports from China, Mexico, and Canada. The former shed 2.7%, weighed down by automakers in particular, while the latter dropped 2.5%. Chinese markets stayed closed for the Lunar New Year holiday.

European markets are firmly lower as well, after Trump said that tariffs on the EU will “definitely happen.” London’s FTSE 100 was last seen down 1.4%, while the French CAC 40 and German DAX are off 1.9% and 2%, respectively. German automakers BMW, Volkswagen, and Porsche are all feeling the heat from the signed tariffs as well.