U.S. stock futures experienced declines as investors prepare for the upcoming earnings season, following a significant recovery in the major averages that reversed the losses seen on Friday amid tariff-related concerns. Futures linked to the Dow Jones Industrial Average fell by 0.5%, while S&P 500 futures dropped by 0.7%. The Nasdaq-100 futures plummeted by 0.9%.
The commencement of earnings season is set for Tuesday morning, with major financial institutions such as JPMorgan Chase, Citigroup, Goldman Sachs, and Wells Fargo scheduled to report their results. Stocks of these Wall Street banks have shown a strong upward trend throughout the year, with analysts anticipating a solid increase in profits from this sector.
On Monday, the trading session saw a recovery as stocks rebounded from the previous Friday’s downturn, which was triggered by concerns surrounding new tariffs. This rebound followed comments made by President Trump, who appeared to downplay the threat of imposing an additional 100% tariff on goods imported from China.
Amid these developments, the ongoing government shutdown has stalled the release of key economic reports, leaving both investors and the Federal Reserve without a clear perspective on the economy’s trajectory. Notably, the consumer inflation report, which was initially scheduled for release this Wednesday, has been postponed until October 24. Additional data regarding retail sales and producer prices is also expected to be delayed.
This lack of timely economic data amplifies the significance of Federal Reserve Chair Jerome Powell’s upcoming address on Tuesday at the National Association for Business Economics (NABE) annual meeting. Investors will be closely watching for insights into Powell’s outlook and any potential implications for monetary policy.
In a related note, silver prices have soared to an all-time high amidst concerns about liquidity in London, as reported by Bloomberg, indicating increased interest and activity in precious metals as investors navigate current market conditions.
