US stock futures edged lower on Tuesday as investors braced for more tariff policy shifts from President Donald Trump and focus turned to inflation with testimony from Federal Chair Jerome Powell on deck.
Dow Jones Industrial Average futures (YM=F) moved 0.2% lower, while S&P 500 futures (ES=F) dropped 0.3%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) pulled back 0.4%, after a winning day on Wall Street.
Markets have taken a cautious tone in the wait for Trump to reveal the plan for universal like-for-like tariffs promised for announcement midweek. The president on Monday imposed 25% tariffs on all steel and aluminum imports from March 4, putting further pressure on top trading partners Canada and Mexico.
Investors are trying to gauge how far Trump’s tariff threats will translate into action, as they worry about the potential impact of trade war on corporate earnings, the global economy, and on inflation in particular. Amid the uncertainty, gold (GC=F) set a fresh record — the latest in a series — as investors sought out less-risky assets, before retreating on Tuesday.
Given that, markets are looking to Powell’s two-day testimony in Congress, starting Tuesday in the Senate, for any hint to the Fed’s thinking how the tariffs could affect price pressures.
With inflation seen as persistent, the countdown is already on for January’s Consumer Price Index reading on Wednesday and its wholesale counterpart on Thursday. Markets are seeking insight into whether conditions are right for interest-rate cuts, though a looming tariff impact could cloud any sign of recent easing.
In tech, an Elon Musk-led bid to buy OpenAI captured Wall Street’s attention as AI spending fears continue to weigh on the Magnificent Seven. The AI nonprofit’s CEO Sam Altman shot down the unsolicited offer of $97.4 billion, a significant undershoot of its valuation.
Meanwhile, Meta (META) began to lay off workers as part of CEO Mark Zuckerberg’s pledge to cut thousands of jobs in a pivot to finding AI talent.
On Tuesday, Coca-Cola earnings are expected to show a quarter of growth in the company’s battle with PepsiCo. Wall Street anticipates Q4 revenue of $10.67 billion and earnings per share of $0.52. Super Micro Computer (SMCI), Lyft (LYFT), and DoorDash (DASH) are also set to report results later.
LIVE 2 updates
