US stock futures pulled back on Tuesday following two days of gains as investors concerned about economic slowdown looked to the Federal Reserve’s policy meeting for insight.
Dow Jones Industrial Average futures (YM=F) and S&P 500 futures (ES=F) both fell about 0.4%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) moved 0.5% lower.
Uncertainty still dogs markets as investors debate whether the sell-off that pushed the S&P 500 into correction territory is over. Many on Wall Street don’t think the recent bump in stocks signals a clear bottom, amid concerns that President Trump’s trade war will hit already weakening economic growth.
Read more: The latest on Trump’s tariffs
CBOT – Delayed Quote USD
As of 7:13:07 AM EDT. Market Open.
YM=F ES=F NQ=F
Geopolitics also weighed on minds, with gold prices (GC=F) hitting a record high after Israeli airstrikes on Gaza escalated tensions in the Middle East. The metal traded above $3,031 an ounce, building on a 5% gain in the past month as investors turned away from US stocks.
Meanwhile, oil futures gained over 1% amid those worries. Eyes were also on Trump’s call with President Putin to negotiate Russia-Ukraine truce and Germany’s historic parliamentary vote on massive boost to government spending.
Attention is now turning to the Fed’s two-day policy meeting, which kicks off on Tuesday, with the focus on what the central bank has to say about those tariff risks to the economy. Policymakers are largely expected to hold rates steady in their decision on Wednesday.
An update on housing starts for February due later on Tuesday could shed more light on whether US growth is stalling.
LIVE 3 updates
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Good morning. Here’s what’s happening today.
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Oil extends gains as Israeli strikes fuel tensions in the Middle East
Crude oil futures were rallying for a third day in a row on Tuesday after Israeli military strikes on Gaza heightened tensions in the Middle East.
Brent futures (BZ=F), the global benchmark, rose 1.1% to top $71 a barrel, while US benchmark West Texas Intermediate futures (CL=F) put on 1.3% to trade above $68.
The overnight airstrikes by Israel put paid to a nearly two-month ceasefire with Hamas. They also added to Middle East risks already in play after US assaults on an Iran-backed Houthi group behind attacks in the Red Sea.
The hit to global crude supply as the US clamps down on Iran “could range in the order of 1 million barrels a day, offsetting gains from OPEC as it phases out voluntary production cuts,” ANZ Group Holdings analysts Brian Martin and Daniel Hynes said, according to Bloomberg.
While oil is trading near its highest levels in March, prices are still headed for a quarterly loss as concerns about the impact of US tariffs on global economic growth and demand.
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Gold holds at all-time high as data points towards US slowdown
Gold (GC=F) continues to hover around the $3000 all-time high. Haven demand continues to be pushed worldwide as market volatility rattles investors.
Bloomberg reports:
