US stock futures showed modest declines on Tuesday as investors processed the impact of President Donald Trump’s decision to impose 25% tariffs on steel and aluminum imports.
Futures for the S&P 500 (ES=F) edged down by 0.2%, while Dow futures (YM=F) fell 0.1%, and Nasdaq futures (NQ=F) slipped 0.2%. Trump’s announcement on Monday night confirmed that the tariffs will apply to all steel and aluminum imports, including those from major suppliers like Canada and Mexico. The new tariffs are set to take effect on March 4th, with these neighboring countries working to negotiate exemptions before an additional set of tariffs kicks in on March 1.
Investor concerns in the tech sector continued to weigh heavily on the market, especially regarding artificial intelligence (AI) spending. The sector, particularly the so-called Magnificent Seven — Amazon (AMZN), Google (GOOG), Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), and Tesla (TSLA) — has been experiencing setbacks due to weak earnings reports in recent weeks. Meta (META), however, was the only major tech player to report double-digit gains this year.
Meta drew additional attention on Monday as the company began layoffs under CEO Mark Zuckerberg’s initiative to streamline operations and focus on securing AI talent. Around 3,600 workers, or 5% of the company’s workforce, are expected to be impacted by these cuts.
In the commodities market, coffee futures surged by 6%, reaching an all-time high of over $4.30 per pound. A 35% price increase this year has been attributed to a combination of panic-buying, low yield, and high demand. Brazil and Vietnam, the world’s largest coffee suppliers, are not expected to increase production until 2026.
Looking ahead, Coca-Cola is expected to report growth in its Q4 earnings on Today, with Wall Street forecasting revenue of $10.67 billion and earnings per share of $0.52 in the ongoing competition with PepsiCo.
Other companies set to release earnings reports on Tuesday include Super Micro Computer (SMCI), Lyft (LYFT), and DoorDash (DASH).
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