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U.S. Stock Futures Slip as Investors Weigh Fed Signals, Earnings, and Geopolitical Risks

U.S. stock index futures traded lower on Tuesday as markets reopened after a public holiday, with investors assessing a mix of economic data, corporate earnings, and geopolitical developments.

At 05:55 ET (10:55 GMT), Dow Jones futures declined by 85 points, or 0.2%, S&P 500 futures fell 26 points, or 0.4%, and Nasdaq 100 futures slid 195 points, or 0.8%, reflecting renewed pressure on technology-heavy segments of the market.

Wall Street’s main indices were closed on Monday but are coming off a losing week, as investor concerns intensified over the disruptive impact of newly released artificial intelligence models across multiple industries. Additional unease has centered on whether sustained, heavy spending on AI infrastructure will ultimately translate into meaningful returns for mega-cap technology companies.

Fed Minutes and Key U.S. Data in Focus

Market attention this week is firmly focused on upcoming U.S. economic indicators and signals from the Federal Reserve, as investors seek greater clarity on the outlook for interest rates.

The minutes from the Fed’s January policy meeting are due on Wednesday, following the central bank’s decision to leave interest rates unchanged. Several Fed officials are also scheduled to speak in the coming days, potentially offering further insight into policymakers’ thinking.

A series of economic releases is also lined up, with industrial production and durable goods data due on Wednesday, followed by December trade figures on Thursday. On Friday, markets will closely watch the Personal Consumption Expenditures (PCE) price index—the Fed’s preferred inflation measure—for more definitive guidance on inflation trends and the future path of monetary policy.

Recent data offered mixed signals. Consumer price index figures for January, released late last week, showed a mild cooling in headline inflation, while core CPI eased broadly in line with expectations.

Corporate Earnings in the Spotlight

Quarterly earnings remain another key driver of sentiment. Results from Palo Alto Networks (NASDAQ: PANW) are due after the close on Tuesday, and are expected to shed light on the outlook for technology companies facing intensifying competition from emerging AI models.

The cybersecurity firm raised its full-year revenue and profit forecasts in November, citing strong demand for digital security solutions amid rising cyber threats. Palo Alto Networks also recently announced a $3.35 billion acquisition of cloud monitoring firm Chronosphere, with plans to integrate the business into its Cortex AgentiX platform. The move is aimed at enhancing the capabilities of its AI agents by leveraging Chronosphere’s data to identify performance issues and underlying causes.

Elsewhere, investors are also looking ahead to earnings later in the week from DoorDash (NASDAQ: DASH), Walmart (NASDAQ: WMT), and Wayfair (NYSE: W).

Oil Prices Edge Lower Ahead of U.S.–Iran Talks

In commodity markets, Brent crude prices slipped modestly on Tuesday as traders focused on upcoming nuclear negotiations between the United States and Iran.

Brent futures for April delivery fell 0.3% to $68.44 a barrel, while U.S. West Texas Intermediate crude futures rose 1.1% to $63.40 a barrel, with WTI price action distorted by the U.S. holiday on Monday.

U.S. and Iranian officials are set to meet in Geneva to discuss Iran’s nuclear enrichment activities, against a backdrop of elevated military tensions in the Middle East. President Donald Trump has repeatedly warned of potential military action if Tehran fails to accept a U.S.-backed agreement, adding a layer of geopolitical risk to global markets.

Overall, investors remain cautious as they navigate a dense calendar of economic data, central bank signals, earnings releases, and geopolitical developments, all of which are expected to shape near-term market direction.

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