US stock futures experienced a decline on Tuesday morning as investors aimed to stabilize following two consecutive weeks of losses in the broader market. Futures linked to the S&P 500 dipped by 0.5%, while contracts for the Nasdaq 100 dropped by 0.8%. Additionally, futures for the Dow Jones Industrial Average saw a decrease of over 0.3%.
The reduced trading activity comes in a shortened week due to the closure of US markets on Monday in observance of Presidents Day. Last week was particularly challenging for major indices, with the S&P 500 and the Dow both falling over 1%. The Nasdaq Composite experienced an even steeper decline of more than 2%, marking its fifth consecutive weekly drop—the longest losing streak observed since 2022.
Over the past five weeks, the Dow and S&P 500 have recorded losses in four. These downward trends have been primarily fueled by concerns regarding the disruptive potential of artificial intelligence across various sectors, including wealth management, transportation, and logistics. Despite the downward pressure, a cooler-than-expected inflation report released last Friday provided some relief. The January consumer price index data fell below forecasts, yet broader worries about economic growth and sector disruption persisted.
In the coming days, investors will seek further clarity on inflation as the Personal Consumption Expenditures index is set for release on Friday. Also anticipated is the release of minutes from the Federal Reserve’s latest policy meeting, which will occur on Wednesday. Amid political discussions, questions have arisen surrounding a supposed “loyalty pledge” signed by Kevin Warsh, the nominee for Fed chair put forth by Trump.
In corporate news, major companies such as Walmart, DoorDash, and Molson Coors are expected to announce their earnings results throughout the week. As markets continue to navigate through these fluctuations and uncertainties, all eyes will be on economic indicators and corporate performances that could shape investor sentiment in the days ahead.
