S&P 500 Futures Waver as Six-Day Rally Faces Uncertainty: Live Updates

U.S. stock futures dipped early Tuesday, threatening the S&P 500’s six-day winning streak as investors grapple with tariff concerns, recession fears, and Federal Reserve policy signals.

Despite a robust market rebound, corporate updates and economic indicators are shaping a cautious outlook, with traders seeking clarity on the path ahead.

Futures Signal Potential Pause

Early Tuesday, S&P 500 futures declined 0.2%, and Nasdaq 100 futures dropped 0.3%, while Dow Jones Industrial Average futures edged slightly higher.

This follows Monday’s subdued session, where the S&P 500 rose 0.09% for its sixth consecutive gain, the Dow added 137 points (0.32%), and the Nasdaq Composite inched up 0.02%.

The S&P 500’s 20% surge over the past 27 trading days has brought it within 3% of its record high, a rally Carson Group’s Ryan Detrick called a sign of genuine market strength on CNBC’s “Closing Bell: Overtime.”

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Home Depot Stays Resilient

Home Depot shares climbed 2% in premarket trading after reaffirming its full-year sales growth forecast of 2.8%. CFO Richard McPhail noted the company would avoid price hikes despite tariff pressures, a move that reflects confidence in navigating trade challenges.

Recent market data shows retail stocks gaining traction, with consumer spending holding steady despite inflationary concerns.

Did You Know?
The S&P 500’s current six-day winning streak is its longest since July 2024, driven by strong performances in technology and consumer discretionary sectors.

Economic Headwinds and Fed Focus

The market’s resilience faces tests from tariff uncertainties and recession worries, compounded by Moody’s recent downgrade of U.S. government credit. Real-time financial updates suggest tariffs could raise consumer prices by 1-2%, though corporate cost absorption is mitigating impacts for now.

Investors are closely watching Federal Reserve officials, including St. Louis Fed President Alberto Musalem, for insights on interest rate policy. Recent online discussions highlight a split in sentiment, with some anticipating rate cuts in 2025 and others wary of persistent inflation.

Rally’s Strength Questioned

Despite the S&P 500’s gains, skepticism persists. Richard Bernstein, a noted strategist, warned on CNBC that the U.S. profit cycle may be peaking, urging caution. However, 79% of S&P 500 companies have exceeded earnings expectations this quarter, per recent data, supporting optimism.

Detrick emphasized the rally’s broad-based nature, arguing it’s not merely a short-term bounce but a reflection of underlying market confidence.