US Stock Futures Dip Ahead of Powell's Testimony

Futures contracts for major US stock indices declined on Tuesday as investors eagerly await Federal Reserve Chair Jerome Powell's monetary policy testimony before the Senate Banking Committee. The testimony is expected to provide insights into rising tariffs and their potential impact on inflation.

Semiannual Testimony and Inflation Data

Powell's semiannual testimony on monetary policy will be closely scrutinized, especially in light of last week's tariff announcements by President Donald Trump. Inflation data, scheduled to be released on Wednesday, has also drawn market attention. Analysts anticipate that Powell will provide specific details regarding the Fed's thought process amidst the evolving trade landscape.

Steelmakers Surge on Tariff Announcement

Shares of steelmakers and aluminum producers extended gains after Trump imposed a flat 25% tariff on steel and aluminum imports without exceptions. Cleveland-Cliffs and U.S. Steel rose by 2.2% and 1.6%, respectively. Aluminum Century Aluminum also gained 2.5%. Trump has indicated further tariff announcements in the coming days.

Tech Giants Retreat

In contrast to the gains in steelmakers, megacap and growth stocks declined, with Amazon.com and Meta Platforms losing approximately 0.4% each. At the time of writing, Dow E-minis fell by 0.23%, S&P 500 E-minis by 0.32%, and Nasdaq 100 E-minis by 0.44%.

Earnings Season Continues

Coca-Cola, DuPont, S&P Global, and Humana are among the companies reporting earnings before the opening bell. Data indicates that 76.6% of S&P 500 companies have exceeded analysts' earnings expectations.

Phillips 66 Gains on Activist Stake

Phillips 66 gained 5.6% after Reuters reported that activist Elliott Investment Management had acquired a stake valued at over $2.5 billion in the oil refiner.