U.S. stock futures dropped on Tuesday as investors brace for tariffs and await the Federal Reserve’s rate decision. Uncertainty around future policy moves and trade actions created a cautious mood across markets.
S&P 500 futures fell 0.8% while Dow Jones futures slipped 0.6%. Nasdaq 100 futures dropped more than 1%, leading the decline. The drop came as investors watched for signs from the Federal Reserve on its next steps.
The central bank began a two-day meeting on Tuesday. Most analysts expect rates to remain unchanged. However, market watchers are focused on Fed Chair Jerome Powell’s comments. His remarks may reveal how the Fed views recent economic developments.
A key concern is the impact of President Trump’s new tariffs. Over the weekend, he announced a 100% tariff on foreign-made films. He also said he would not speak with China’s leader this week about trade.
Late Monday, Trump hinted at new tariffs on pharmaceuticals. He plans to announce them within two weeks. The move followed an executive order aimed at boosting domestic drug production.
These tariff signals triggered a retreat in U.S. markets. On Monday, the S&P 500 ended its longest winning streak in two decades. As investors brace for tariffs, confidence has wavered.
Ford shares dropped in premarket trading despite strong earnings. The automaker pulled its 2025 forecast. It expects a $1.5 billion loss due to new auto tariffs. Mattel also withdrew its guidance and plans to raise prices on several products.
Earnings reports on Tuesday include AMD, Super Micro, and Rivian. These companies may also feel pressure from rising costs and trade disruptions.
In summary, as investors brace for tariffs, stock futures weaken and attention shifts to the Fed’s guidance on economic stability. Markets are bracing for more volatility in the days ahead.
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