U.S. equity futures pulled back on Tuesday as fresh Chinese countermeasures reignited trade-war concerns, tempering optimism ahead of first-quarter earnings reports from major Wall Street banks.
As of 04:39 P.M. (GMT+7), Dow Jones futures decreased 159 points, or 0.35%, to 45,908.70 points while S&P 500 futures fell 46.20 points, down 0.69%, to 6,608.50 points. Nasdaq 100 futures also decreased by 229 points, or 0.93% to 24,521.30 points.
The pullback follows a robust rally on Monday but reflects renewed anxiety after Beijing responded to President Trump’s recently announced tariffs, leading hopes for a de-escalation in trade tensions between Washington and Beijing to decline.
China announced sanctions on five U.S.-associated subsidiaries of South Korean shipbuilder Hanwha Ocean in a direct response to American restrictions targeting its shipping sector. Additionally, Chinese authorities have launched their own review into the influence of a U.S. investigation on their shipping industry.
Attention is turning to bank earnings, with JPMorgan Chase, Citigroup, Goldman Sachs, and Wells Fargo scheduled to report results Tuesday morning stateside. Shares of leading U.S. banks have generally performed strongly in 2025 so far, with consensus estimates pointing toward healthy profit growth.
A continuing government shutdown has delayed the release of key U.S. economic data, leaving investors and Federal Reserve policymakers with limited visibility on the economy. The release of the closely watched consumer inflation report has been postponed until Oct. 24, while updates on retail sales and producer price inflation are also expected to be delayed.
The absence of updated economic data puts renewed emphasis on Federal Reserve Chair Jerome Powell’s address at the National Association for Business Economics annual meeting later on Tuesday, which investors will closely monitor for signals about monetary policy as uncertainties mount.
