US stock index futures fell Tuesday, as investors digested President Donald Trump's tariffs on major metal imports ahead of comments from Fed Chair Jerome Powell and the release of key inflation data.
At 05:15 ET (10:15 GMT), Dow Jones Futures fell 90 points, or 0.2%, S&P 500 Futures dropped 18 points, or 0.3%, and Nasdaq 100 Futures slipped 95 points, or 0.4%.
The main indices rose on Monday, buoyed by advances in shares in U.S. steelmakers following President Trump's announcement that he would slap fresh tariffs on steel and aluminum imports.
The S&P 500 rose 0.7%, the NASDAQ Composite gained nearly 1%, and the Dow Jones Industrial Average rose 0.4%.
Trump signs orders on steel, aluminum tariffs
President Trump followed up his threat late on Monday, and signed executive orders imposing 25% tariffs on steel and aluminum imports, while also stating that there would be no exceptions to the duties.
Major steel exporters such as Canada, Mexico, and Brazil were subject to some quota-based tariff exceptions, which will now be revoked.
Trump warned that tariffs on metals could go higher, and that he was considering tariffs on cars, chips, and pharmaceuticals. The president also flagged plans to raise US import tariffs to match foreign duties on the import of US goods.
Investors are now gauging if Trump will follow through on a separate threat to impose reciprocal tariffs, with worries swirling around a potential increase in international trade tensions.
CPI inflation, Powell's testimony in focus
Focus was now squarely on the consumer price index, due for release on Wednesday, amid concerns that Trump's tariffs policies will add inflationary pressures to the world’s largest economy.
The inflation gauge is projected to show that headline consumer price growth cooled on a month-on-month basis in January and equaled December's annualized pace.
So-called core inflation, which strips out more volatile items like food and fuel, is tipped to accelerate slightly from the prior month.
In December, consumer prices rose by 2.9% year-on-year, above the central bank's target level of 2%.
Fed Chair Jerome Powell could face questions on this topic when he testifies to Congressional committees on Tuesday and Wednesday.
Earnings continue to flow; Coca-Cola the highlight
The fourth-quarter earnings season is more than halfway finished, with S&P 500 firms projected to have delivered income growth versus the year-ago period of 14.8%, up from estimates of less than 10% at the outset of 2025.
On the earnings front, soft drinks giant Coca-Cola Co (NYSE:KO) leads the way, but results are also due from e-commerce group Shopify (NYSE:SHOP), biopharma firm Gilead Sciences (NASDAQ:GILD), ride-hailing firm Lyft (NASDAQ:LYFT) and hospitality company Marriott International (NASDAQ:MAR) are also tipped to report.
Crude bounces
Oil prices rose Tuesday, adding to the previous session’s uptick, on more worries over potential supply disruptions, but gains were limited by worries that escalating trade tariffs could hit global economic growth.
By 05:15 ET, the US crude futures (WTI) gained 1.2% to $73.21 a barrel, while the Brent contract rose 1.3% to $76.83 a barrel.
Both contracts posted gains of near 2% in the prior session after three weekly losses in a row.
Concerns of further disruptions to global supplies were heightened following a Politico report on Monday that European countries plan to seize Russia's shadow fleet.
