US stock futures tipped lower on Tuesday amid dimming hopes for interest rate cuts, as investors looked ahead to the next batch of quarterly results.
A rally in stocks hit the buffers on Monday as the market took on Fed Chair Jerome Powell’s repeated warnings that the Federal Reserve will move cautiously on policy, disappointing those betting on early rate cuts.
With earnings season about halfway done, eyes are on whether Tuesday’s corporate results can help jump-start a return to gains for stocks.
In the early going, Spotify (SPOT) shares jumped in premarket trading after the music streamer’s strong guidance, while Eli Lilly’s (LLY) stock popped after the company’s 2024 profit forecast topped estimates. Ford (F) is expected to report after the market close.
At the same time, investors will listen for whether this week’s Fed speakers break ranks with Powell on the path of policy. Fed officials Loretta Mester and Patrick Harker are scheduled to speak on Tuesday.