US Stock Futures Slip as Tariff Concerns Mount
US stock futures declined on Tuesday amid anticipation of additional tariff policy shifts from President Trump. Investors also turned their attention to inflation, with Federal Reserve Chair Jerome Powell set to testify before Congress.
* Dow Jones Industrial Average futures (YM=F) dipped 0.2%, while S&P 500 futures (ES=F) dropped 0.3%.
* Nasdaq 100 futures (NQ=F) fell 0.4%, despite a positive day on Wall Street Monday.
Investors are monitoring Trump's plans for universal tariffs, which he promised to announce midweek. On Monday, the president imposed 25% tariffs on all steel and aluminum imports from March 4, targeting key trading partners Canada and Mexico.
The uncertainty surrounding Trump's tariff threats has raised concerns about their potential impact on corporate earnings, the global economy, and inflation. Gold (GC=F) hit a record high on Tuesday as investors sought out safe-haven assets.
Financial markets are examining Powell's two-day congressional testimony beginning Tuesday for insights into how the Fed views the potential impact of tariffs on price pressures.
With inflation a growing concern, the countdown is on for the release of the Consumer Price Index on Wednesday and its wholesale counterpart on Thursday. Investors will analyze these data points for indications of whether conditions warrant interest rate cuts, although the looming tariff impact could cloud any signs of easing.
In tech, Elon Musk's bid to acquire OpenAI drew attention, while Meta (META) initiated layoffs as part of its pivot towards AI talent acquisition.
Coca-Cola is expected to report its earnings on Tuesday, with Wall Street anticipating revenue growth amid competition with PepsiCo. Other notable upcoming earnings releases include Super Micro Computer (SMCI), Lyft (LYFT), and DoorDash (DASH).