U.S. Stock Futures Decline as Apple Leads Big Tech Lower

Stock-index futures in the United States saw a downturn early Tuesday, driven by a drop in Apple shares following reports of slowing iPhone sales in China.

How are stock-index futures trading?

  • S&P 500 futures (ES00) dipped 14 points, or 0.3%, to 5124
  • Dow Jones Industrial Average futures (YM00) fell 62 points, or 0.2%, to 38960
  • Nasdaq 100 futures (NQ00) eased 112 points, or 0.6%, to 18150

Recent Performance

On Monday, the Dow Jones Industrial Average (DJIA) fell 98 points, the S&P 500 (SPX) declined 6 points, and the Nasdaq Composite (COMP) dropped 67 points.

Caution Among Investors

A cautious atmosphere surrounds risk assets early Tuesday, as investors remain cautious following the previous session’s uncertainties. The S&P 500 reached a new high but closed in the red, leading to a sense of uncertainty among those with a more technical approach.

According to Jim Reid, strategist at Deutsche Bank, “After posting 16 weekly gains out of 18 for the first time since 1971, yesterday saw the S&P 500 get the week off to a subdued start as we await several key events later this week, including appearances from Chair Powell at Congress on Wednesday and Thursday, the U.S. jobs report on Friday, and the ECB decision on Thursday.”

Market Update: Tech Pressure and Economic Events

Index futures are currently facing pressure due to indications that Apple’s shares will decline by 1.5%, reaching a four-month low. This news follows a 24% drop in iPhone sales in China during the first six weeks of the year.

Global Outlook

The markets are also influenced by a tentative tone inherited from Asia, where the Hang Seng index dropped by 2.6%. This pullback in some U.S. tech stocks and the lack of significant economic stimulus emerging from China’s National People’s Congress have contributed to the cautious sentiment.

Expert Insight

Stephen Innes, managing partner at SPI Asset Management, notes that the NPC in China did not meet expectations, especially regarding fiscal policy. The unchanged fiscal deficit-to-GDP target of 3% signals a cautious approach, leaving some disappointed.

Upcoming Earnings and Economic Releases

Companies set to report earnings on Tuesday include Target, Ferguson, and NIO before the opening bell on Wall Street. After the close, CrowdStrike, Nordstrom, and Box are scheduled to release their earnings.

On the economic front, updates on January factory orders and February ISM services are expected at 10 a.m. Eastern time.

Central Bank Events

Federal Reserve Vice Chair for Supervision Michael Barr is scheduled to make comments at noon and then again at 2:15 p.m., adding to potential market insights.

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