Dow futures were in the red early on Tuesday, down about 106 points, or 0.23%. Traders were digesting a fresh batch of drama from Washington as President Trump’s decision to push out Fed governor Lisa Cook and his talk of piling new tariffs onto key trading partners.
Long-term Treasury yields kept climbing, which didn’t help the mood. Put together, it left investors uneasy and set the stage for what could be a choppy day in the markets.
5 things to know before Wall Street opens
1. Morgan Stanley and BNP Paribas, which had held back until now, have joined the camp expecting the Fed to cut rates at its September meeting.
The shift came after Jerome Powell’s comments at Jackson Hole, which leaned more dovish on policy.
Traders quickly latched onto the idea as markets are now pricing in about an 84% chance of a cut, and the conversation has already turned to how much further easing might follow.
2. Nvidia is in the spotlight with quarterly results due on August 28, and investors are treating it as a key test for the red-hot AI sector.
As one of the biggest names in the S&P 500, Nvidia’s numbers could set the tone for tech stocks more broadly, its performance has the potential to sway major indexes and influence how investors view AI-related plays around the world.
3. Indian stock markets were hammered on Tuesday as US President Donald Trump’s 50% tariff fears started setting off a selloff that spilled across Asia.
The Sensex sank nearly 800 points in the opening stretch, with the Nifty sliding in tandem. Export-heavy sectors, from pharma to IT services, were among the hardest hit.
Traders in Mumbai said the move blindsided desks that were already on edge over global rate worries. “Nobody had this on the radar, the hit to sentiment is immediate,” a trader said.
The sudden escalation adds another layer of risk for U.S. supply chains and raises the stakes for Wall Street when trading opens later in the day.
4. Wall Street pulled back Monday as investors locked in gains after the Dow’s record close last week.
The Fed-fueled rally gave way to caution, with traders turning their focus to a slate of economic reports due in the coming days.
Inflation and GDP data top the list, numbers that could either cement bets on rate cuts or cool the market’s enthusiasm if they come in too hot.
5. Treasury yields stayed high while the dollar’s rebound kept traders on edge, raising questions about the drag on equities.
Swings in bonds and currencies are complicating the outlook, especially for exporters and global firms. The caution sets up another uneasy session on Wall Street.
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