U.S. stock index futures were subdued on Tuesday morning. Investors are waiting for earnings reports from major retailers to get insights into consumer spending and the impact of tariffs. Home Depot shares inched up before its quarterly results, which could provide clues about the housing market.
Intel shares jumped 6.3% in premarket trading. The chipmaker received a $2 billion investment from Japan’s SoftBank Group. Traders are also awaiting remarks from Federal Reserve Vice Chair for Supervision Michelle Bowman later today.
Bowman has expressed support for at least three interest rate cuts this year to support the labor market. Interest rate futures are pointing to two 25 basis point rate cuts in 2025, with the first expected in September. “It is perfectly possible to make a case for immediate U.S. rate cuts given the economic damage of trade taxes and policy uncertainty,” said Paul Donovan, chief economist at UBS Global Wealth Management.
Investor anticipation affects stock futures
At 5:30 a.m. ET, Dow futures were up 20 points, or 0.04%. S&P 500 futures were down 0.75 points, or 0.01%.
Nasdaq 100 futures were up 4.25 points, or 0.02%. The key event this week is the Fed’s annual symposium in Jackson Hole, Wyoming from August 21-23. Investors will closely scrutinize Fed Chair Jerome Powell’s comments for any clues on the central bank’s economic outlook and monetary policy plans.
S&P Global affirmed its ‘AA+’ credit rating on the U.S. The ratings agency noted that revenue from President Trump’s tariffs will offset the fiscal impact of his recent tax cut and spending bill. In corporate news, Palo Alto Networks shares surged 5.6% after the cybersecurity company forecast strong fiscal 2026 revenue and profit. The company is betting on growing demand for its AI-powered solutions.
Crude oil prices dropped 1% on the possibility that talks between Russia, Ukraine and the U.S. could lead to lifting sanctions on Russian crude, increasing global supply.
