U.S. Stock Futures Decline Amid Tariff Uncertainty, Inflation Focus

U.S. stock futures fell on Tuesday due to investor concerns over President Donald Trump's unpredictable tariff policies and the upcoming testimony from Federal Reserve Chair Jerome Powell on inflation.

Key Market Movements:

* Dow Jones Industrial Average futures (YM=F) dipped 0.2%.
* S&P 500 futures (ES=F) dropped 0.3%.
* Nasdaq 100 futures (NQ=F) pulled back 0.4%.

Tariff Concerns:

Markets are watching closely as President Trump prepares to announce additional tariffs. His imposition of 25% tariffs on steel and aluminum imports from Canada and Mexico has raised worries about a potential trade war and its impact on corporate earnings, the global economy, and inflation.

Inflation Focus:

Investors are analyzing the potential impact of tariffs on price pressures. The Consumer Price Index reading for January, scheduled for Wednesday, and its wholesale counterpart on Thursday will provide insights into the persistence of inflation.

Gold Rises:

Gold (GC=F) reached a fresh record high amid market uncertainty, as investors sought haven assets.

Powell's Testimony:

Markets anticipate Powell's testimony before Congress, starting Tuesday, for clues on the Fed's assessment of tariffs and their potential impact on monetary policy.

Earnings Watch:

* Coca-Cola (KO) is expected to report earnings, with analysts predicting a quarter of growth.
* Super Micro Computer (SMCI), Lyft (LYFT), and DoorDash (DASH) are also set to release results.

Other Market News:

* The Hang Seng (^HSI) closed 1% lower in Asia, weighed down by tariff concerns and weakness in Chinese automakers.
* Gold continued to benefit from market uncertainty, reaching an all-time high for the second consecutive week.