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US stock futures climbed on Tuesday, pointing to the start of recovery from another brutal sell-off as investors’ worries about economic growth deepened in the lead-up to key inflation reports.
Futures on the S&P 500 (ES=F) were up 0.5%, while those on the Dow Jones Industrial Average (YM=F) rose around 0.4%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) moved up 0.6%.
On Monday, the three major indexes built on losses from the previous week, with the Nasdaq Composite (^IXIC) falling 4% to log its worst daily loss since 2022 as the “Magnificent Seven” megacaps faltered. But shares in Tesla (TSLA) rebounded in premarket after a show of support from President Donald Trump.
The mood on Wall Street has grown increasingly foreboding as investors gauge the chances of stagflation, amid deep cuts to firms’ economic forecasts and an upending in the markets’ thinking on economic growth.
CBOT – Delayed Quote USD
As of 8:13:16 AM EDT. Market Open.
YM=F ES=F NQ=F
That has put the focus on two key inflation reports later this week, February’s Consumer Price Index (CPI) print due Wednesday and the Producer Price Index (PPI) for the same month on Thursday. Later on Tuesday, the January JOLTS reading on job openings should shed light on odds of interest-rate cuts.
Meanwhile, Trump is pressing on with his fast-moving trade war, undeterred by concerns over the health of the US economy. A 25% tariff on all imports of steel and aluminum into the US from all countries is set to begin on Wednesday.
Read more: The latest on Trump’s tariff plans
On the corporate front, Delta Airlines (DAL) stock slid after the carrier cut its outlook for the current quarter late Monday, citing “macro uncertainty.” Peers Southwest (LUV) and American Airlines (AAL) also flagged headwinds on Tuesday, reflecting economic pressures on corporate performance.
LIVE 7 updates
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European stocks are the hottest trade on Wall Street as investors turn away from US ‘exceptionalism’
Yahoo Finance’s Ines Ferré reports:
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Airline stocks stumble after Delta cuts outlook, citing ‘macro uncertainty’
Airline stocks sank in premarket trading Tuesday after Delta Air Lines (DAL) cut its outlook for the current quarter, citing softening domestic demand amid “macro uncertainty.”
Delta stock fell 7%, while United Airlines declined 4.5%, and American Airlines (AAL) dropped 3% as concerns swirled about a consumer slowdown.
In a release on Monday, Delta revised its revenue growth to 3%-4% for the first quarter, down from 7%-9% previously forecast, Yahoo Finance’s Josh Schafer reported. Profits are also expected to take a hit, with earnings per share expected to be in a range of $0.30-$0.50 in the first quarter, down from $0.70-$1.00 previously.
Then, on Tuesday, American forecast a bigger first quarter loss, as tariff pressures and government spending uncertainty weighed on the outlook for travel demand.
Southwest (LUV) also cut its revenue growth forecast, though shares rose after the budget carrier announced it would begin charging for some checked bags in an effort to boost earnings. The policy shift hinted at the growing influence of activist investor Elliott Management at the company as it pushes to revamp Southwest’s business model.
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Something to watch: DOGE ripples
An early trend to call out as we get ready for earnings season in a few weeks: the DOGE impact on corporate America.
Southwest (LUV) mentioned “less government travel” in its sales warning today. Delta (DAL) CEO Ed Bastian slightly hinted at an impact in a TV interview following its own sales warning late on Monday.
HPE (HPE) CEO Antonio Neri tells me he is monitoring the potential impact of DOGE — which for his company would come in the form of fewer server orders.
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Good morning. Here’s what’s happening today.
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Wall Street’s 2025 forecasts are falling apart for one simple reason
Yahoo Finance’s Josh Schafer reports:
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Gold rebounds as investors weigh US outlook, tariff concerns
Gold (GC=F) rose past $2,900 an ounce as Wall Street’s sell-off eased, though investor concerns over the US economy persisted.
Bloomberg News reports:
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In the second Trump administration, the Vice President talks to the stock market
President Donald Trump has taken a different approach to the stock market during his second term in office.
Namely: he appears to have outsourced the responsibility.
And after a sharp sell-off across the stock market on Monday saw post-election gains across the major indexes and several key tech stocks that have powered the market wiped out, it was not the president, but rather the vice president that appeared to do the talking to investors.
In a post on X, the social media platform owned by Elon Musk, a key member of Trump’s administration, Vice President JD Vance said companies that build in the US will be rewarded; for companies building outside the US, “you’re on your own.”
Last week, the president said, “I’m not even looking at the market” as the rollout of his tariff policy shook investor confidence.
Unlike his first term in office, Trump has also not spoken explicitly about the Federal Reserve and his view on policy. (Last time around, Trump repeatedly called for lower rates.)
Instead, Treasury Secretary Scott Bessent has repeatedly expressed a view that Treasury yields should be lower amid Trump’s push to clean up the federal budget and rein in spending across the government.
Given the speed and depth of the market’s sell-off since hitting record highs on Feb. 19, however, we’ll see how long the president can hold this new line.
