Futures Pointing To Initial Rebound On Wall Street

The major U.S. index futures are currently pointing to a modestly higher open on Tuesday, with stocks likely to regain ground following the sell-off seen in the previous session.

Traders may look to pick up stocks at reduced levels following the steep drop seen on Monday, which extended a notable downward trend by the markets.

The Nasdaq and the S&P 500 ended Monday’s trading at six-month closing lows, while the narrower Dow slumped to its lowest closing level in four months.

Buying interest may remain somewhat subdued, however, as concerns about the economic impact of President Donald Trump’s policies continue to weigh on investors’ minds.

Traders may also be reluctant to make significant moves ahead of the release of the some key economic data over the coming days.

Reports on consumer and producer price inflation are likely to be in focus along with readings on consumer sentiment and inflation expectations.

U.S. stocks tumbled on Monday and the major averages all closed sharply lower, with the tech-laden Nasdaq recording a more pronounced loss. Uncertainty about President Donald Trump’s tariff moves, fears of a recession in the world’s largest economy, and a weak global growth outlook weighed on investor sentiment.

In a Fox News interview on Sunday, U.S. President Donald Trump declined to rule out the possibility of a recession following his tariff actions on Mexico, Canada and China.

“There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America,” Trump told the “Sunday Morning Futures” program.

With a slew of crucial economic data due later in the week, the mood in the market is extremely cautious.

Reports on consumer and producer price inflation, as well as readings on consumer sentiment and inflation expectations, are due this week.

The Dow closed down 890.01 points or 2.08 percent, at 41,911.71. The S&P 500 ended lower by 155.64 points or 2.7 percent, at 5,614.56, while the Nasdaq dropped 727.90 points or 4 percent to 17,468.32.

Tesla tanked nearly 16 percent. Meta Platforms, Nvidia, Alphabet, Oracle and Apple lost 4 to 5 percent, Microsoft declined 3.3 percent, Intel drifted down 3.2 percent, and Amazon ended lower by about 2.3 percent.

Morgan Stanley, Wells Fargo, US Bancop, Goldman Sachs, Citigroup, American Express, JP Morgan and Bank of America all closed sharply lower.

United Airline Holdings, Delta Airlines, Boeing, Nike, FedEx, Netflix, Moody’s and Airbnp ended weak as well.

Regeneron Pharmaceuticals, Exxon Mobil, Vertex Pharmaceuticals, ResMed, Constellation Brands, General Motors and PepsiCo were among the notable gainers in the session.

Commodity, Currency Markets

Crude oil futures are jumping $0.88 to $66.91 a barrel after slumping $1.01 to $66.03 a barrel on Monday. Meanwhile, after falling $14.70 to $2,899.40 an ounce in the previous session, gold futures are climbing $18.80 to $2,918.20 an ounce.

On the currency front, the U.S. dollar is trading at 147.37 yen compared to the 147.27 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0914 compared to yesterday’s $1.0834.

Asia

Asian stocks ended lower on Tuesday amid fears that the U.S. economy could be slipping into a recession, particularly in light of ongoing tariff disputes.

However, regional markets ended off their day’s lows after a White House spokesperson downplayed recession fears and said corporate leaders have pledged “trillions in investment commitments” that will create thousands of new jobs.

The dollar index slipped as demand for recession havens boosted gold and sovereign bonds. Oil prices recouped earlier losses to inch higher but held near multi-year lows on trade war worries and the prospects of more oil coming into the market.

China’s Shanghai Composite Index reversed course to end 0.4 percent higher at 3,379.83 as Citigroup upgraded Chinese equities to overweight, citing DeepSeek’s artificial-intelligence technology breakthrough, the government’s support for the tech sector and still-cheap valuations. Hong Kong’s Hang Seng Index finished marginally lower at 23,782.14.

Japanese markets fell notably as the yen touched a five-month high on growing fears over an economic downturn in the U.S.

The Nikkei 225 Index ended down 0.6 percent at 36,793.11 after hitting a six-month low earlier in the day. The broader Topix Index settled 1.1 percent lower at 2,670.72.

Technology investor SoftBank Group fell 2.8 percent and lender Mizuho Financial Group lost 3.7 percent, while chip testing equipment maker Advantest reversed losses to end 1.7 percent higher.

Japan’s economy experienced slower growth than initially reported in the last quarter of 2024, while household spending rose 0.8 percent in January from a year earlier, official data revealed today ahead of a BoJ policy meeting next week.

Seoul stocks fell sharply, with the Kospi tumbling 1.3 percent to 2,537.60 as investors become increasingly concerned about U.S. economic growth stalling.

Australian markets fell to a seven-month closing low, with financials, tech and healthcare stocks pacing the declines.

The S&P/ASX 200 Index closed 0.9 percent lower at 7,890.10, marking its lowest since mid-August 2024. The broader All Ordinaries Index ended down 1.1 percent at 8,103.40.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index settled 0.8 percent lower at 12,410.97.

Europe

European stocks are turning in a mixed performance on Tuesday after falling sharply the previous day due to tariff worries, the threat of a U.S. recession and signs of deepening deflationary pressures in China.

While the German DAX Index is up by 0.3 percent, the French CAC 40 Index is down by 0.2 percent and the U.K.’s FTSE 100 Index is down by 0.4 percent.

HelloFresh shares have slumped. The German meal kit company said it expects sales to fall this year as it prioritizes high value customers over volume.

Consumer goods and adhesives maker Henkel has also plummeted after giving a soft guidance for 2025 organic sales growth.

On the other hand, automaker Volkswagen has shown a strong move to the upside despite giving muted outlook for 2025.

Costain Group shares have also surged. The British construction firm reported significant increases in operating profit, margins, and earnings per share for the year ended December 2024.

U.S. Economic News

The Labor Department is due to release its report on job openings in the month of January at 10 am ET. Job openings are expected to dip to 7.5 million in January after falling to 7.6 million in December.

At 1 pm ET, the Treasury Department is scheduled to announce the results of this month’s auction of $58 billion worth of three-year notes.