Dow Futures Dip Amid Tariff Policy Shifts, Inflation Concerns Take Center Stage
US stock futures declined on Tuesday as investors anticipated potential tariff adjustments from President Donald Trump. Market attention shifted towards inflation, with Federal Reserve Chair Jerome Powell scheduled to testify before Congress.
Key Market Movements:
* Dow Jones Industrial Average futures (YM=F) fell 0.2%.
* S&P 500 futures (ES=F) dropped 0.3%.
* Nasdaq 100 futures (NQ=F) retreated approximately 0.5%.
Tariff Policy Uncertainties:
Investors remain cautious ahead of Trump's announcement of universal tariffs. On Monday, the President imposed 25% tariffs on steel and aluminum imports from March 4, increasing pressure on major trading partners Canada and Mexico. Uncertainty lingers regarding the extent of Trump's tariff threats and their potential impact on corporate earnings, the global economy, and inflation.
Inflation Focus:
Amid ongoing inflation concerns, investors await Powell's testimony to gauge the Fed's assessment of the impact of tariffs on price pressures. The January Consumer Price Index reading is scheduled for release on Wednesday, followed by its wholesale counterpart on Thursday.
Earnings News:
* Coca-Cola (KO) shares surged 3% after exceeding fourth-quarter profit and revenue estimates due to robust soda demand.
* Shopify (SHOP) stock declined 7% after the e-commerce company's subdued first-quarter profit forecast overshadowed positive holiday sales results.
Tech and Other Updates:
* Elon Musk's proposed acquisition of OpenAI has sparked attention amid ongoing AI spending concerns. OpenAI CEO Sam Altman rejected the $97.4 billion offer, significantly lower than its valuation.
* Meta (META) commenced layoffs as part of CEO Mark Zuckerberg's plan to pivot towards AI talent.
Global Markets:
* Oil futures extended gains by 1.4%, buoyed by indications that US sanctions on Russian crude are affecting output.
* Hang Seng (^HSI) in Hong Kong closed 1% lower as investors assessed the impact of Trump's tariffs.
* Shanghai Shenzhen CSI 300 (000300.SS) fell X%, extending a recent reversal of gains.