U.S. Stock Futures Dip Following Economic Concerns, New Tariff Signals

U.S. stock index futures saw slight declines Tuesday evening as Wall Street extended losses from the regular session, weighed down by disappointing economic data and renewed tariff threats from former President Donald Trump.

Investors also continued to assess the latest round of corporate earnings, with reports from AMD, Palantir, and others as the second-quarter earnings season draws to a close.

As of 20:10 ET (00:10 GMT), S&P 500 Futures slipped 0.1% to 6,319.75, while Nasdaq 100 Futures fell 0.3% to 23,064.75. Dow Jones Futures were little changed at 44,239.0.

Wall Street Slips on Weak Services Data, Trade Concerns

In Tuesday's regular session, the S&P 500 dropped 0.5%, the Nasdaq Composite lost 0.7%, and the Dow Jones Industrial Average edged down 0.1%. The declines came after a volatile few days, with markets swinging between Friday’s selloff on weak jobs data and Monday’s rebound on Fed rate cut optimism.

Investor sentiment took a hit as Trump floated the idea of a “small tariff” on pharmaceutical imports, with potential future hikes. He also hinted at possible chip-related tariffs within the next week.

Adding to the unease, the ISM non-manufacturing PMI came in weaker than expected, falling to 50.1 in July from 50.8 in June, below consensus estimates of 51.5. As the services sector accounts for roughly 80% of U.S. economic activity, the soft reading stirred fresh concerns about the economy’s trajectory.

Rate Cut Bets Grow as Economic Outlook Softens

The weak PMI reading followed last week’s lackluster nonfarm payrolls report and dovish remarks from San Francisco Fed President Mary Daly, further strengthening expectations for a potential interest rate cut in September.

On a more positive note, data showed the U.S. trade deficit narrowed more than expected in June, as imports declined toward the end of Q2—possibly reversing earlier gains driven by tariff-related stockpiling.

Earnings Season Update: Mixed Results Across Key Sectors

The tail end of the earnings season continues to shape market direction:

• Palantir Technologies surged nearly 8% after reporting record quarterly revenue, fueled by robust demand for its AI-based solutions from both government and enterprise clients.

• In contrast, AMD shares dropped over 6% in after-hours trading, as the chipmaker missed high expectations for Q2 earnings, although its forward outlook beat estimates thanks to strong AI and data center momentum.

• Pfizer shares gained 5.1% after the pharma giant exceeded Q2 estimates and raised its full-year profit forecast.

Investors now turn their attention to major earnings due Wednesday from Walt Disney, McDonald’s, and Uber, which could set the tone for the remainder of the week.