Investing.com - U.S. stock futures inch higher ahead of a trading week that features a crucial deadline for new U.S. tariffs on Canada, Mexico and China. Economic figures, including fresh factory activity data and a closely-monitored payrolls report, are also due out in the days ahead. Elsewhere, a private survey shows a faster-than-expected expansion in Chinese manufacturing sector activity in February, while Bitcoin spikes after President Donald Trump listed five cryptocurrencies he will include in a strategic reserve.
1. Futures higher
U.S. stock futures pointed higher on Monday, as investors geared up for a week of potential tariff developments and key economic data.
By 03:27 ET (08:27 GMT), the Dow futures contract had risen by 26 points or 0.1%, S&P 500 futures had gained 6 points or 0.1%, and Nasdaq 100 futures had increased by 34 points or 0.2%.
The main averages advanced on Friday following a choppy session highlighted by a contentious meeting between President Trump and Ukrainian counterpart Volodymyr Zelenskiy that played out live on television before the world’s media. The hot-tempered exchange threatened to exacerbate uncertainties around the Ukraine conflict, heaping on to an already murky outlook for the U.S. economy and inflation.
In individual stocks, shares in Dell (NYSE:DELL) dipped after the PC maker said it expected to post a decline in adjusted gross margin in its 2026 fiscal year. Rival HP (NYSE:HPQ) also slid on lower-than-anticipated quarterly profit forecasts.
But artificial intelligence-darling Nvidia (NASDAQ:NVDA) and electric vehicle maker Tesla (NASDAQ:TSLA) climbed, pushing up the benchmark S&P 500.
2. Trump’s tariff deadline ahead this week
Investors will likely be keeping close tabs on Washington this week, with the White House set to impose previously delayed tariffs on Mexico and Canada.
Over the weekend, Commerce Secretary Howard Lutnick told Fox News that that the levies, which were postponed by a month in February after Trump secured guarantees around beefed up border security from America’s northern and southern neighbors, will come into effect on Tuesday.
But Lutnick noted that the situation around the duties remains "fluid," adding that Trump will have the ultimate decision on the proposed 25% level on all items incoming from Mexico and non-energy imports from Canada.
"There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’re going to leave that for the president and his team to negotiate," Lutnick said.
Last week, uncertainty surrounded the timing of the tariffs after Trump floated a possible April 2 deadline. However, he later reiterated the Tuesday deadline and said he would slap an additional 10% trade tax on China after placing a similarly-sized surcharge on imports from the country on February 4.
3. ISM purchasing managers’ index
On the economic calendar on Monday, traders will be monitoring a key reading of U.S. factory activity in February.
The Institute for Supply Management’s purchasing managers’ index for last month is tipped to come in at 50.6, down from 50.9 in January.
Although the mark would be above the 50-point level that denotes expansion, it would signal a possible slowdown in growth in the manufacturing sector heading into the final month of the first quarter.
The figure grew for the first time in more than two years in January, but the staying power of this uptick remained in doubt due in part to Trump’s tariff plans. Some economists have flagged that the levies could strengthen the dollar, making U.S.-made goods less attractive.
Separate data in recent days have pointed to an easing in consumer spending and lingering inflationary pressures, presenting a complicated economic picture for Federal Reserve officials. At its last meeting in January, the Fed said it would take a wait-and-see approach to further potential interest rate cuts this year, partly citing uncertainty around the impact of Trump’s trade and immigration proposals on inflation.
4. Chinese factory activity surpasses forecasts - Caixin PMI
Chinese manufacturing activity grew at a faster than expected pace in February, fueled by strong export orders, private purchasing managers index (PMI) data showed on Monday.
The Caixin manufacturing PMI increased to a three-month high of 50.8 in February, above expectations of 50.4 and the prior month’s reading of 50.1.
The Caixin data comes days after official PMI released over the weekend showed the manufacturing sector expanded at a quicker rate than anticipated in February.
China has been grappling with a range of economic headwinds, including a sputtering real estate sector, sluggish domestic spending and intensifying international trade tensions. Still, demand was solid from foreign clients, with new export business rising modestly for the first time since last November, the survey stated.
"Overall, the market showed clear signs of recovery, with manufacturers launching new products," Wang Zhe, Senior Economist at Caixin Insight, said in a statement.
5. Bitcoin surges on Trump reserve promise
Bitcoin rose sharply on Monday, extending an overnight rebound after Trump listed five cryptocurrencies he will include in a strategic reserve, boosting crypto markets.
Trump on Sunday repeated his plans for a Crypto Strategic Reserve, stating that he had directed an executive group to proceed with the project. He claimed that Bitcoin, Ether, XRP, Solana, and Cardano will comprise the reserve.
“A U.S. Crypto Reserve will elevate this critical industry,” Trump said in a social media post.
Trump had last month signed an executive order to explore a regulatory framework on crypto, including the establishment of a strategic digital assets reserve. But the order had made no mention of Bitcoin, and had provided few details on what the regulatory framework would entail.
Trump is now set to hold his first White House crypto conference this Friday, where he will likely offer more insight into his plans for the industry.