U.S. stock futures dropped on Tuesday following Friday’s negative moves. Futures of major benchmark indices were trading lower.
President Donald Trump warned on Monday that a record $15 trillion in planned investment in the U.S. would be “immediately cancelled” if courts are permitted to strike down his tariff policies.
The declaration comes in response to a recent U.S. appeals court ruling that deemed his administration’s broad use of tariffs unconstitutional.
Meanwhile, the 10-year Treasury bond yielded 4.27% and the two-year bond was at 3.65%. The CME Group's FedWatch tool‘s projections show markets pricing an 89.8% likelihood of the Federal Reserve cutting the current interest rates for the Sept. 17 decision.
| Futures | Change (+/-) |
| Dow Jones | -0.40% |
| S&P 500 | -0.46% |
| Nasdaq 100 | -0.60% |
| Russell 2000 | -0.72% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Tuesday. The SPY was down 0.48% at $641.98, while the QQQ declined 0.65% to $566.69, according to Benzinga Pro data.
Cues From Last Session
With most sectors on the S&P 500 closing on a positive note, health care, real estate, and consumer staples stocks recorded the biggest gains on Friday.
However, information technology and consumer discretionary stocks bucked the overall market trend, closing lower. This contributed to U.S. stocks settling down for the day, with the Nasdaq Composite falling more than 1%. Despite the session’s weakness, all major indices recorded gains for August.
The 30-stock Dow gained more than 3% in August, while the S&P 500 recorded around a 2% surge. The tech-heavy Nasdaq also gained approximately 1.6% during the month.
On the economic front, the Personal Consumption Expenditures price index—the Fed’s broad measure of inflation—increased 2.6% from a year earlier in July, right in line with Wall Street expectations. U.S. personal income increased by 0.4% month-over-month to $25.905 trillion in July, while personal spending rose by 0.5% to $20.802 trillion.
Alibaba Group Holding Ltd. ADR (NYSE:BABA) shares jumped around 12.9% on Friday following the release of its fiscal first-quarter results, as the e-commerce giant reported revenue that exceeded analyst expectations. In contrast, Marvell Technology Inc. (NASDAQ:MRVL) shares dropped 19% after the company issued third-quarter sales guidance with a midpoint below estimates.
The Dow Jones index ended 92 points or 0.20% lower at 45,544.88, whereas the S&P 500 index fell 0.64% to 6,460.26. Nasdaq Composite declined 1.15% to 21,455.55, and the small-cap gauge, Russell 2000, tumbled 0.50% to end at 2,366.42.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -1.15% | 21,455.55 |
| S&P 500 | -0.64% | 6,460.26 |
| Dow Jones | -0.20% | 45,544.88 |
| Russell 2000 | -0.50% | 2,366.42 |
Insights From Analysts
Ryan Detrick, Chief Market Strategist at Carson Group LLC, warned Monday that August's strong performance could spell trouble for September markets.
According to Carson Investment Research data spanning 1950-2025, when August posts gains exceeding 1% with five or more all-time highs, September has delivered negative returns 100% of the time.
"Could a really good August mean trouble in Sept?" Detrick wrote on X. "When S&P 500 in Aug up >1% and at least 5 ATHs [All-time high] (like '25), the following month of September has never been higher."
The S&P 500 gained 1.9% in August to a peak at 6,508 points on Thursday while recording five new all-time highs, matching the historical pattern that has preceded every September decline.
Meanwhile, CNBC’s Jim Cramer said, “September is seasonally weak,” adding that “this presidency can defy any seasonality, so I wouldn’t bet on the calendar”
Additionally, global equity market sentiments have surged to levels not seen in over a year, according to the latest figures put out by Bank of America's global research team.
On Monday, in a post on X, The Kobeissi Letter shared BofA's Global Equity Risk-Love indicator, which considers several metrics to quantify how much investors "love" or "fear" global equity markets at any given time.
The post notes that this indicator has "jumped to 1.4, its highest in 13 months," marking a sharp turnaround from just four months ago when the metric hovered around negative 1.0. This essentially indicates an elevated risk appetite among investors across global equity markets.
According to the post, the indicator's current level is historically rare, noting that "since 1987, sentiment has only been higher 7% of the time," having hit similar levels for brief periods recently, such as during the aftermath of the 2020 COVID-19 crash.
"Market sentiment is through the roof," the post concludes, while also subtly highlighting periods of consolidation and heightened activity that often follow such euphoric highs.
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Upcoming Economic Data
Here's what investors will be keeping an eye on this week;
- On Tuesday, August’s S&P final U.S. manufacturing PMI will be out by 9:45 a.m., and August’s ISM manufacturing, along with July’s construction spending data, will be out by 10:00 a.m. ET.
- On Wednesday, St. Louis Fed President Alberto Musalem will speak at 9:00 a.m., July job openings and factory orders data will be out by 10:00 a.m., and Minneapolis Fed President Neel Kashkari will speak at 1:30 p.m. ET.
- Fed Beige Book data will be out by 2:00 p.m. ET, and timing for August’s auto sales data is yet to be determined.
- On Thursday, August’s ADP employment data will be out by 8:15 a.m. ET.
- The initial jobless claims data for the week ending Aug. 30, the second-quarter U.S. productivity revision, and July’s U.S. trade deficit data will be out by 8:30 a.m. ET.
- August’s S&P final U.S. services PMI will be released at 9:45 a.m., and August’s ISM services data will be out by 10:00 a.m. ET.
- Senate Banking nomination hearing for Stephen Miran to be Fed governor will take place at 10:00 a.m., New York Fed President John Williams will speak at 12:05 p.m., and Chicago Fed President Austan Goolsbee will speak at 7:00 p.m. ET.
- On Friday, August’s U.S. employment report, unemployment rate, and hourly wages data will be released at 8:30 a.m. ET.
Stocks In Focus
- Nio Inc. ADR (NYSE:NI) rose 2.35% in premarket on Tuesday as it is expected to report earnings before the opening bell. Analysts estimate earnings loss of 30 cents per share on revenue of $2.76 billion.
- Signet Jewelers Ltd. (NYSE:SIG) advanced 2.21% as analysts expect it to report earnings of $1.23 per share on revenue of $1.50 billion before the opening bell.
- Zscaler Inc. (NASDAQ:ZS) was up 1.59% as it anticipates earnings of 80 cents per share on the revenue of $706.91 million after the closing bell.
- Hyperscale Data Inc. (NYSE:GPUS) dropped 5.40% after announcing a $125 million "at-the-market" equity offering.
- Canopy Growth Corp. (NASDAQ:CGC) declined 11.11% after disclosing a $200 million offering.
- SSR Mining Inc. (NASDAQ:SSRM) was 2.02% higher after Compound Planning Inc. purchased a new stake in the firm.
- Amazon.com Inc. (NASDAQ:AMZN) fell 0.87% despite revealing $7.5 billion AWS investment in New Zealand.
- Southwest Airlines Co. (NYSE:LUV) was up 1.34% as it began using FAA-mandated cockpit barriers on new Boeing jetliners.
Commodities, Gold, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 2.61% to hover around $65.67 per barrel.
Gold Spot US Dollar rose 0.022% to hover around $3,477.23 per ounce. Its last record high stood at $3,508.54 per ounce. The U.S. Dollar Index spot was 0.55% higher at the 98.3040 level.
Asian markets ended mixed on Tuesday, as India’s S&P BSE Sensex, Hong Kong's Hang Seng, China’s CSI 300, and Australia's ASX 200 indices fell. While Japan's Nikkei 225 and South Korea's Kospi indices rose. European markets were mostly lower in early trade.
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