U.S. stock futures tumbled early Tuesday as markets digested a flurry of corporate earnings while bracing for the Federal Reserve’s crucial policy decision amid growing tariff-related concerns.
At 05:50 ET (09:50 GMT), Dow Jones Futures slipped 280 points (-0.7%), S&P 500 Futures lost 45 points (-0.8%), and the Nasdaq 100 Futures plunged 225 points (-1.1%), reflecting widespread investor caution.
The drop follows Monday’s negative close, which snapped a nine-day rally for the S&P 500—the longest since 2004. Investor sentiment soured after President Donald Trump’s shock announcement of 100% tariffs on foreign-produced films, sparking fears of a wider trade war escalation.
The Fed kicks off its two-day meeting today, with markets overwhelmingly expecting interest rates to remain unchanged. However, attention is sharply focused on Fed Chair Jerome Powell’s post-meeting remarks, which may hint at future rate path changes, especially amid inflation concerns fueled by tariffs.
Economic data showed surprising strength in the U.S. services sector, but the jump in “prices paid” metrics reinforced inflationary worries—making the Fed’s stance even more critical.
Corporate earnings also weighed on sentiment:
Traders await results from Advanced Micro Devices (NASDAQ:AMD) and Super Micro Computer (NASDAQ:SMCI) after the bell.
Crude markets recovered on Tuesday after Monday’s sharp sell-off. At 06:46 ET:
This bounce comes despite OPEC+ announcing steeper-than-expected production hikes. Saudi Arabia and its allies are ramping up output to offset price pressure, adding to energy market volatility.
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