Investors are approaching Tuesday’s trading session with caution as the Dow futures slipped in early hours, a sign of nerves ahead of a busy day filled with corporate earnings and comments from the Federal Reserve that could sway expectations around interest rates.
Dow Jones Industrial Average futures were modestly lower on Tuesday, while S&P 500 and Nasdaq 100 futures also slipped into the red.
The pullback follows a quiet Monday session, where the Dow edged down 19 points to close at 44,323.07 even as the S&P 500 and Nasdaq notched fresh record highs, underscoring a market divided between caution and momentum.
5 things to know before Wall Street opens today
1. A packed slate of earnings reports is likely to steer the market’s next move.
Heavyweights like Alphabet and Tesla are set to report after the closing bell, while Coca-Cola, General Motors, and Lockheed Martin will post results before the market opens.
So far, the earnings season has delivered mostly upbeat surprises. About 85% of S&P 500 companies have topped expectations, putting second-quarter profit growth on pace for a 5% year-over-year gain.
2. Tensions are running high on the trade front as the clock ticks toward August 1. That’s when a new round of US tariffs on European imports could kick in if talks don’t yield a breakthrough.
Brussels is already said to be weighing its response. Meanwhile, separate negotiations with India appear to be stuck in neutral.
The concern on Wall Street isn’t just about geopolitics as investors are worried that another tariff flare-up could reignite inflation pressures and throw a wrench into global supply chains at a time when stability feels hard-won.
3. All eyes are on Fed Chair Jerome Powell, who’s set to speak later today in what will be his last public appearance before next week’s key policy meeting.
While he’s unlikely to touch directly on interest rates, thanks to the central bank’s pre-meeting blackout rules, investors will be listening closely for any subtle hints.
With recent economic data painting a mixed picture, expectations for rate cuts keep getting pushed further out.
Powell’s tone and choice of words could offer valuable clues about how the Fed is reading the current moment.
4. Caution wasn’t just confined to Wall Street as markets across Asia and Europe also traded mixed on Tuesday as investors weighed solid corporate earnings against fresh trade jitters.
The US dollar saw modest gains, with the Dollar Index ticking up 0.07% to 97.92, reflecting continued demand for safe-haven assets.
Treasury yields nudged higher, gold pulled back slightly, and Bitcoin hovered in a tight range, showing little conviction in either direction.
5. Wall Street looks set for a tense session Tuesday, with markets treading water amid stretched valuations and growing uncertainty around trade and interest rates.
As the Dow futures continue to trade in the red before the open, the investors are bracing for anything.
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