Today’s Market ActionMajor Indexes Pull Back in Premarket Trading
U.S. stock futures are pointing lower on Tuesday morning, pulling back after a positive start to June. Futures tied to the Dow Jones Industrial Average are down 0.4% or about 150 points, while S&P 500 futures have slipped 0.3%, and Nasdaq 100 futures are also down 0.3%.
This follows Monday’s session where all three major indexes managed to close in positive territory despite ongoing trade tensions. The S&P 500 rose 0.41%, the Nasdaq Composite advanced 0.67%, and the Dow added 0.1% yesterday.
The benchmark S&P 500 and tech-heavy Nasdaq are both coming off their best monthly performance since November 2023, with strong gains in May as investors remained optimistic about potential Federal Reserve rate cuts later this year.
Trade Tensions Weigh on Market Sentiment
Investors continue to monitor escalating trade tensions between the United States and China. Beijing recently pushed back against former President Trump’s claims that China had breached a temporary trade agreement, dimming hopes for a quick resolution. Market analysts suggest a leader-level call between Trump and Chinese President Xi Jinping might be needed to break the current deadlock.
Adding to global trade concerns, the European Union has criticized Trump’s proposal to double steel tariffs to 50%, warning that such a move could undermine ongoing trade discussions. The EU has indicated it’s prepared to introduce countermeasures in response.
The OECD has downgraded the U.S. growth outlook, citing rising trade tensions and tariff uncertainty. It now expects U.S. growth to slow to 1.6% in 2025 and 1.5% in 2026, down from its previous 2.2% forecast.
Treasury Yields and Commodities
The yield on the benchmark 10-year U.S. Treasury note slipped about 5 basis points to 4.41% in early trading Tuesday, while the 2-year yield dropped to 3.92%.
Earnings in Focus
Several notable companies are reporting earnings today. Dollar General (DG) released its fiscal first-quarter results this morning, reporting net sales increased 5.3% to $10.4 billion with same-store sales up 2.4%. The discount retailer posted earnings per share of $1.78, up 7.9% from the previous year, and raised its financial guidance for fiscal year 2025.
Other companies reporting before the bell include Ferguson Enterprises (FERG), Donaldson Company (DCI), Ollie’s Bargain Outlet (OLLI), NIO (NIO), and Signet Jewelers (SIG).
Stocks to Watch
Constellation Energy shares jumped 11% in pre-market trading after the company announced a 20-year agreement to supply nuclear power to tech giant Meta Platforms (META). Under the deal, Meta will purchase approximately 1.1 gigawatts of electricity from Constellation’s Clinton Clean Energy Centre in Illinois, with supply set to begin in 2027.
Broadcom (AVGO) is also in focus as Citi raised its price target on the chipmaker by $66 to $276 ahead of its earnings report on Thursday. Analysts maintain a buy rating and expect Broadcom to beat expectations, citing strength in its AI segment.
Steel stocks remain on investors’ radar after surging on Monday following Trump’s announcement about doubling tariffs on steel imports. Cleveland-Cliffs (CLF) soared 22%, while Steel Dynamics (STLD) and Nucor (NUE) gained over 13% and 12% respectively.
Economic Data on Tap
Investors are awaiting key economic data points today, including April’s Job Openings and Factory Orders reports. These releases could provide further insight into the health of the U.S. economy and potentially influence the Federal Reserve’s future rate decisions.
Market participants will be closely watching these reports for signs of economic resilience or weakness as concerns about trade tensions and their potential impact on growth continue to linger.
As global markets navigate these uncertainties, trading could remain volatile throughout the session, with investors seeking clarity on both the trade situation and the path forward for monetary policy.