U.S. stock futures were trading lower on Tuesday after Monday’s decline as the new administration’s tariffs continued to spook the market.
On Monday, Mexico’s president Claudia Sheinbaum reached a deal with President Donald Trump to delay tariffs by increasing Mexico's military presence on the US border. Later, after a call between Trump and Canadian Prime Minister Justin Trudeau, tariffs on Canada were also suspended for 30 days.
All major index futures were down. Google parent Alphabet Inc. GOOGL GOOG, Advanced Micro Devices Inc. AMD, Pfizer Inc. PFE, PepsiCo Inc. PEP and Spotify Technology SA SPOT are expected to report earnings today.
The 10-year Treasury yield stood at 4.58%, while the two-year yield was at 4.25%. According to the CME Group's FedWatch tool, there is an 86.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.
| Futures | Change (+/-) |
| Nasdaq 100 | -0.10% |
| S&P 500 | -0.20% |
| Dow Jones | -0.24% |
| Russell 2000 | -0.14% |
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ were mixed during premarket trading on Tuesday. SPY fell 0.17% to $596.75, and QQQ was up 0.01% to $518.16, according to Benzinga Pro data.
Cues From The Last Session
US stocks declined on Monday following Trump’s tariff announcement which led to the Dow dropping over 665 points intraday.
Owens & Minor Inc. OMI shares fell 35% after lowering revenue guidance, while Tyson Foods Inc. TSN reported strong earnings.
December U.S. construction spending rose 0.5%, and the January ISM manufacturing PMI increased to 50.9.
Most S&P 500 sectors declined, led by consumer discretionary, information technology, and industrials, while utilities and consumer staples gained.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -1.20% | 19,391.96 |
| S&P 500 | -0.76% | 5,994.57 |
| Dow Jones | -0.28% | 44,421.91 |
| Russell 2000 | -1.28% | 2,258.42 |
Insights From Analysts
As the market declined following the tariffs and trade wars, Ryan Detrick, the chief market strategist at Carson Research, calmed the investors down by highlighting that every year has scary headlines that pull the stock market down.
He further explained the basic principle of investing in the market by saying “Volatility is the toll we pay to invest”.
Highlighting the tariff impact, economist Jeremy Siegel said that the prospect of new trade barriers introduces another layer of volatility, with markets reacting negatively to the uncertainty.
“History has shown that tariffs are rarely viewed as a net positive for equities, and while they could lead to a temporary bump in inflation and price levels, the Fed is unlikely to respond to a one-time inflationary shock,” he added.
While Mexican and Canadian tariffs were paused, Siegel, who is the senior economist at WisdomTree and a former professor at the University of Pennsylvania added that “Trump's new tariffs are not smart either economically or politically”.
“The political impact is likely to be very negative for Trump's program, as the rise in prices (gasoline and some food items) will have high visibility in the mainstream media and put pressure on some legislators,” he added.
See Also: How to Trade Futures
Upcoming Economic Data
Here’s what investors will keep an eye on Tuesday:
- December’s job openings and factory orders data will be out at 10:00 a.m., ET
- Atlanta Fed President Raphael Bostic will speak again at 11:00 a.m., ET on Tuesday, on the topic of housing.
- San Francisco Fed President Daly will speak at 2:00 p.m., ET and Federal Reserve Vice Chairman Philip Jefferson will speak at 7:30 p.m., ET.
Stocks In Focus:
- Spotify Technology SA SPOT was up 2.90% in the premarket on Tuesday as it is expected to report its fourth-quarter earnings before the market opens. According to Benzinga's consensus estimates, the company is expected to report earnings of $2.060 per share on the revenue of $4.15 billion.
- PepsiCo Inc. PEP declined 0.19% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.94 per share on revenue of $27.89 billion.
- Pfizer Inc. PFE rose 0.53% as Wall Street expects it to report quarterly earnings of 47 cents per share on revenue of $17.40 billion.
- Electronic Arts Inc. EA slipped 0.19% ahead of its earnings which will be released after the closing bell. Analysts expect it to report quarterly earnings of $3.08 per share on revenue of $2.32 billion.
- UBS Group AG UBS fell 5.58% despite reporting stronger-than-expected earnings for its fourth quarter because it disclosed a share buyback program of up to $3 billion, which failed to impress investors.
- NXP Semiconductors NV NXPI was up 0.80% as it posted upbeat earnings and sales results for its fourth quarter on Monday.
- Palantir Technologies Inc. PLTR was up 18.77% following better-than-expected fourth-quarter results.
- Illumina Inc. ILMN slipped 5.11% and PVH Corp. PVH declined 3.98% as the Chinese Ministry of Commerce added the companies to the unreliable entities list amid the ongoing trade war with the U.S.
Commodities, Gold And Global Equity Markets:
Crude oil futures were trading lower in the early New York session by 1.54% to hover around $72.03 per barrel.
The gold spot index was down by 0.01% to $2,814.48 per ounce. The Dollar Index was down 0.36% at 108.60 level.
Asian markets were mixed on Tuesday as China's CSI 300 and Australia's ASX 200 index fell. Whereas Hong Kong's Hang Seng, South Korea's Kospi, and Japan's Nikkei 225 index advanced. European markets were also mixed in trade.
Read Next:
Photo courtesy: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
