U.S. stock futures retreated Tuesday as investors assessed a fresh batch of corporate earnings ahead of the start of the latest Federal Reserve meeting.
At 05:50 ET (09:50 GMT), Dow Jones Futures dropped 280 points, or 0.7%, S&P 500 Futures slipped 45 points, or 0.8%, and Nasdaq 100 Futures fell 225 points, or 1.1%.
The main indices closed lower Monday as tariff uncertainty continues to weigh, with sentiment was dented by U.S.President Donald Trump’s announcement of new 100% tariffs on foreign-made movies.
The broad-based S&P 500 index dropped 0.6% to snap its nine-day rally - its longest winning streak since 2004. The tech-heavy NASDAQ Composite dropped 0.7%, while the Dow Jones Industrial Average slipped 0.2%.
Fed meeting looms large The Fed is scheduled to kick off its two-day meeting later Tuesday, with the central bank expected to hold interest rates steady.
Fed Chair Jerome Powell recently signalled that the policymakers are in a wait-and-see mode amid tariff concerns. This comes despite overt pressure from President Trump and Treasury Secretary Scott Bessent to cut policy rates.
Given the decision is largely seen as a forgone conclusion, the focus will be on comments from Powell to get insights into the Fed’s future rate path.
A reading of activity in the key U.S. services sector, which accounts for more than two-thirds of the economy’s output, was stronger than anticipated, signaling that businesses may be able to shrug off headwinds from the tariffs. Still, a metric of prices paid by services companies rose, adding to worries that the duties could fuel inflationary pressures.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Corporate results continue Investors will also await earnings reports from the likes of DoorDash (NASDAQ:DASH) before the open, followed by Advanced Micro Devices (NASDAQ:AMD) and Super Micro Computer (NASDAQ:SMCI) after the close.
The U.S. meal delivery firm announced plans to buy Deliveroo (LON:ROO) in a deal valuing the British rival at about $3.9 billion, with DoorDash seeking a bigger reach and local expertise to take on competition.
Elsewhere, Ford Motor (NYSE:F) slashed its full-year guidance as the U.S. carmaker noted uncertainty around the outlook due to Trump’s tariffs.
Palantir Technologies (NASDAQ:PLTR) lifted its annual sales guidance, but shares in the artificial intelligence-focused data firm sank in premarket trading on quarterly numbers that disappointed heightened market expectations.
Mattel (NASDAQ:MAT) stock fell premarket after the toymaker paused its 2025 full-year guidance due to tariff uncertainty.
Crude prices bounce Oil prices rose Tuesday, bouncing after the previous session’s sharp drop following the decision by a group of major producers to accelerate increases in output, raising oversupply concerns.
At 09:50 ET, Brent futures climbed 2.8% to $61.93 a barrel, and U.S. West Texas Intermediate crude futures advanced by 2.9% to $58.76 per barrel.
Both benchmarks had settled at their lowest since February 2021 on Monday, driven by the decision over the weekend by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to announce much higher production hikes than initially expected.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Saudi Arabia, the world’s largest crude exporter, is set to lead the cartel into unwinding over two years of production cuts, with several OPEC+ members looking to increase sales volumes to offset weaker oil prices.
