U.S. stock futures fell on Tuesday after ending higher on Monday amid a revenue miss from McDonald’s Corp. MCD and weak ON Semiconductor Corp. ON earnings. All four benchmark indices were trading lower.
President Donald Trump imposed the promised 25% tariff on steel and aluminum imports on Monday, including from Canada and Mexico, targeting metal products to protect U.S. industries and counteract efforts by countries like Russia and China to bypass existing duties.
The 10-year Treasury yield stood at 4.52%, while the two-year yield was at 4.28%. According to the CME Group's FedWatch tool, there is a 93.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.
| Futures | Change (+/-) |
| Nasdaq 100 | -0.52% |
| S&P 500 | -0.39% |
| Dow Jones | -0.25% |
| Russell 2000 | -0.53% |
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ both experienced negative premarket trading on Tuesday. SPY fell 0.35% to $602.76, and QQQ declined 0.44% to $526.93, according to Benzinga Pro data.
Cues From The Last Session
Chipmakers led a Nasdaq surge of nearly 1% on Monday, with Nvidia Corp. NVDA, Broadcom Inc. AVGO, and Micron Technology Inc. MU all posting significant gains.
This tech sector strength, along with energy and utilities gains, propelled the S&P 500 and the Dow Jones. Despite last week’s losses driven by inflation and tariff concerns, Monday saw investors shrug off those worries.
Financials and utilities were the only S&P 500 sectors to close lower. Inflation expectations remained steady at 3% for January.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 0.98% | 19,714.27 |
| S&P 500 | 0.67% | 6,066.44 |
| Dow Jones | 0.38% | 44,470.41 |
| Russell 2000 | 0.36% | 2,287.94 |
Insights From Analysts
Wharton finance professor Jeremy Siegel, in a podcast, forecasted that the stock market's response would be entirely contingent on the duration of the tariffs. “As long as these tariffs are in effect and are not lowered, it’s very hard to see the stock market going up," stated Siegel.
“Trump's tariffs are now higher on the mind of investors than most of the economic data and will likely be the most important mover of stocks until the last set of data before the March meeting,” he added in his weekly commentary note.
The chief market strategist at Carson Research, Ryan Detrick highlighted a data point comparing the S&P 500’s December lows to the next year’s first quarter low.
According to this data, if the S&P 500 index falls below its previous year’s December low in the first quarter of a new year, it is likely that the full-year return could be negative.
The index fell by 0.2% on average for the full year when the first quarter’s lowest level has fallen below December’s lowest level.
Meanwhile, on the economic front, former Treasury Secretary Larry Summers warned the proposed tariffs would lead to "fewer American jobs, more American inflation, and probably a bigger trade deficit," questioning potential national security benefits from tariffing allies.
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Upcoming Economic Data
Here’s what investors will keep an eye on Tuesday:
- On Tuesday, January’s NFIB optimism index data will be released at 6:00 a.m., ET.
- Cleveland Fed President Beth Hammack will speak at 8:50 a.m., ET.
- Fed Chairman Jerome Powell’s testimony to Congress begins at 10:00 a.m., ET.
- San Francisco Fed President Mary C Daly will speak at 10:20 a.m., and New York Fed President John C Williams and Fed Governor Michelle Bowman will speak at 3:30 p.m., ET.
Stocks In Focus:
- Coca-Cola Co. KO was up 0.01% in premarket on Tuesday ahead of its earnings, which will be released before the opening bell. Analysts expect it to report quarterly earnings of 52 cents per share on revenue of $10.68 billion.
- Marriott International Inc. MAR fell 0.16% as Wall Street expects it to report quarterly earnings of $2.38 per share on revenue of $6.38 billion before the opening bell.
- Shopify Inc. SHOP gained 3.42% ahead of its earnings, which will be released before the opening bell. Analysts expect it to report quarterly earnings of 43 cents per share on revenue of $2.73 billion.
- Gilead Sciences Inc. GILD rose 0.05% as Wall Street expects it to report quarterly earnings of $1.70 per share on revenue of $7.14 billion after the closing bell.
- Harmonic Inc. HLIT was down 25.63% after it reported better-than-expected earnings for its fourth quarter but issued weak guidance for the first quarter.
- Fluence Energy Inc. FLNC was down 35.42% after it reported first-quarter revenue of $186.8 million, representing a 49% decrease year-over-year. Net loss increased to $57.0 million from $25.6 million year-over-year.
Commodities, Gold And Global Equity Markets:
Crude oil futures were trading higher in the early New York session by 1.27% to hover around $73.24 per barrel.
The gold spot index was down by 0.15% to $2,903.52 per ounce. The Dollar Index was down 0.01% at 108.309 level.
Asian markets were mixed on Monday. Australia's ASX 200, South Korea's Kospi, and Japan's Nikkei 225 index advanced. Whereas, China's CSI 300, and Hong Kong's Hang Seng index fell. European markets were mostly higher in trade.
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