U.S. stock futures traded lower Tuesday as investors anticipated key inflation reports due later in the week. The Dow Jones Industrial Average slipped 80 points, or 0.2%. Futures tied to the S&P 500 fell 0.3%, while Nasdaq-100 futures dropped 0.4%.
These moves came after the President signed an order Monday evening raising aluminum tariffs to 25% from 10%. Both levies will take effect on March 4. The announcement spurred a rally in steel producers’ shares during Monday’s trading.
Investors are also considering the consumer price index (CPI) report, due Wednesday, followed by the producer price index (PPI) on Thursday. However, the actual economic effect of the tariffs may only be seen with future inflation data, said Sam Stovall, chief investment strategist at CFRA Research. “If the tariffs go into effect for a while, disrupt supply chains, and result in increased inflation, then investors are going to worry,” he said.
But right now — especially with CPI numbers on Wednesday and PPI on Thursday expected to show year-on-year declines in both the headline and the core readings — that would provide support underneath the market and allow it to continue to creep higher,” Stovall added. Fundstrat technical strategist Mark Newton anticipates more volatile trading ahead for stocks. This remains a choppy market for U.S. equities in the near term as part of a stellar ongoing intermediate-term uptrend, which has shown no evidence of deterioration despite any of the recent tariff-related volatility spikes,” he said in a note.
“Despite the positive technological recovery lately, the broader market continues to lag, and indices like Equal-weighted S&P 500, DJ Transportation Avg., and Russell 2000 remain well off highs hit last December.
Inflation data anticipated amid tariff impact
However, sentiment regarding tariffs and their possible negative implications for the U.S. stock market has gotten quite bearish for both equity and bond markets in recent weeks, which I believe is a positive,” he added.
Check out these companies making headlines in extended trading:
– Advanced Micro Devices (AMD): Shares soared around 12% after the chipmaker beat analysts’ expectations on revenue in the fourth quarter. Revenue of $117.4 million surpassed analysts’ calls for $117.1 million, according to LSEG. – Vertex Pharmaceuticals (VRTX): The biotechnology stock slipped 1% on mixed fourth-quarter results.
-Vertex reported adjusted earnings of $3.98 per share, missing analysts’ estimates of $4.03 per share. Meanwhile, revenue of $2.91 billion topped forecasts for $2.78 billion.
– NXP Semiconductors (NXPI): Shares of the semiconductor company added nearly 2% after its top- and bottom-line beats in the fourth quarter.
-Astera posted adjusted earnings of 37 cents per share on revenue of $141 million. Analysts polled by LSEG forecast earnings of 26 cents per share and $128 million in revenue. The company’s top- and bottom-line guidance for the first quarter also exceeded estimates.
-U.S. stock futures changed a little on Monday night. The Dow Jones Industrial Average futures slipped 26 points, or 0.06%, while futures tied to the S&P 500 and Nasdaq-100 inched down around 0.1% each.
Stay tuned for further live updates as we monitor these market developments.
