Stock futures edged lower early Tuesday despite two consecutive winning sessions that provided a brief respite from recent market declines, CNBC reports.
As of Tuesday morning, futures tied to the Dow Jones Industrial Average fell by 76 points (0.18%), while S&P 500 futures declined 0.21%, and Nasdaq 100 futures dropped 0.31%.
The downward movement follows two straight positive sessions on Wall Street, signaling a shift after a challenging period marked by weak economic data and uncertainty surrounding US tariff policies.
The S&P 500 entered correction territory last week but has managed to regain some ground with recent gains on Friday and Monday. However, the Nasdaq Composite remains in correction, defined as a drop of at least 10% from a recent high. Despite the short-term recovery, all three major indexes remain negative for the year, reflecting the broader market downturn.
Investors remain cautious, closely monitoring developments from the White House and looking ahead to key economic indicators.
Attention now shifts to the Federal Reserve’s two-day policy meeting, beginning Tuesday. The central bank is widely expected to hold interest rates steady, with futures markets pricing in a 99% probability of no change, according to the CME FedWatch Tool.
Federal Reserve Chair Jerome Powell is scheduled to deliver a press conference following Wednesday’s interest rate announcement, where investors will look for any signals regarding future monetary policy.
Mohamed El-Erian, chief economic advisor at Allianz, noted that markets have moved past technical concerns and now face two critical questions:
- Will the current economic slowdown be short-lived?
- Will the market’s confidence in Federal Reserve support prove justified?
Before the Fed’s announcement, investors will also assess fresh economic data on imports, housing, construction, and production set to be released Tuesday morning.
Meanwhile, corporate news continues to shape market sentiment:
- Google announced a $32 billion all-cash acquisition of cloud security firm Wiz, marking the largest acquisition in the company’s history. Shares of Google’s parent company, Alphabet, dipped 0.3% following the news.
- Housing starts surged 11.2% in February, exceeding expectations as mortgage rates declined, according to the Commerce Department.
- PepsiCo was downgraded by Barclays, citing challenges in its US food business. The stock has fallen 12% over the past year.
- Baidu shares rose more than 2% after the Chinese tech giant introduced new AI models, extending a strong rally from the previous session.
Asian markets followed Wall Street’s recent gains, with Hong Kong’s Hang Seng Index rising 2.29%, led by a 12% jump in Baidu shares. Meanwhile, Japan’s Nikkei 225 climbed 1.20%, and India’s Nifty 50 gained 1.20%.
