US stock futures faltered on Tuesday as investors weighed the likely fallout of President Trump’s latest tariff blitz and the US government careened toward a shutdown.
Futures on the Dow Jones Industrial Average (YM=F) and on the S&P 500 (ES=F) both dropped roughly 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also slipped about 0.1%, coming off modest closing gains on Wall Street.
Trump sent out a fresh flurry of tariffs on lumber, timber, and certain types of furniture late Monday, hot on the heels of a threat of levies on foreign-made movies and last week’s plan to put 100% duties on branded drugs. Concerns are growing about the impact on the global economy from Trump’s ever-expanding trade offensive, after new data showed China and Japan’s factories are still caught in a slump.
Meanwhile, markets are bracing for a government shutdown after Trump and Republicans met with Democrats in the Oval Office on Monday but failed to strike a deal to avert a halt to funding. “I think we’re headed to a shutdown,” Vice President JD Vance said after the meeting.
Lawmakers have until 12:01 a.m. ET Wednesday to reach a last-gasp agreement or see the first stoppage since 2019. Odds of a shutdown are near 85%, according to Polymarket.
For Wall Street, the concern is that the government’s economic data releases will halt during a stoppage. The Bureau of Labor Statistics (BLS) will “completely cease operations” if it happens, the Department of Labor said, likely delaying the release of Friday’s nonfarm payrolls report among other top-tier data.
That September jobs report is pivotal to the Federal Reserve’s policy thinking, with the health of the labor market in high focus after mixed economic readings and apparent division at the Fed shook faith in two more rate cuts this year.
A JOLTS update on September job openings due later Tuesday will be closely watched, as it could be the last labor market insight from BLS for some time. Data on consumer confidence is also on the docket.
Looking forward, Nike (NKE) is expected to report earnings after the bell.
LIVE 8 updates
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Wolfspeed shares rally after chipmaker exits Chapter 11 bankruptcy
Wolfspeed (WOLF) stock surged more than 25% before the bell on Tuesday, after the chipmaker emerged from Chapter 11 bankruptcy and said it reduced its overall debt by about 70%.
Reuters reports:
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Budget hotels are feeling the squeeze of an uncertain economy
As luxury products, with their high margins, seem to be thriving in the travel segment, budget services are struggling, especially in the travel segment.
Yahoo Finance’s Hamza Shaban writes in today’s Morning Brief newsletter:
Read more here.
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Spotify CEO Daniel Ek to leave chief executive role
Spotify (SPOT) CEO Daniel Ek will hand over the CEO role to two executives on Jan. 1, the music streaming company announced Tuesday.
Gustav Söderström, Spotify’s chief product and technology officer, and Alex Norström, the chief business officer, were tapped to become co-CEOs, while Ek will transition into an executive chairman role. Ek, who co-founded the streaming giant in 2006, said he would remain engaged “on the long arc of the company.”
“Over the last few years, I’ve turned over a large part of the day-to-day management and strategic direction of Spotify to Alex and Gustav — who have shaped the company from our earliest days and are now more than ready to guide our next phase,” Ek said in a statement. “This change simply matches titles to how we already operate.”
Spotify shares dropped 4% in premarket trading on the news.
Read more here.
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Good morning. Here’s what’s happening today.
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What a government shutdown could look like
“I think we’re headed to a shutdown,” Vice President JD Vance said overnight, as both sides left an Oval Office meeting saying no deal is in the immediate offing.
The lack of progress boosts the odds of the first government stoppage since 2019, which could begin one minute after midnight on Tuesday, unless a last-minute deal is struck.
Yahoo Finance’s Ben Werschkul lays out the likely fallout:
Read more here.
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Premarket trending tickers: Wolfspeed, Intel and Newmont
Here’s a look at some of the top stocks trending in premarket trading:
Wolfspeed (WOLF) stock soared over 19% in premarket trading on Tuesday after the chipmaker said it had exited a Chapter 11 bankruptcy after cutting its total debt by almost 70%.
Intel (INTC) stock fell 2% before the bell on Tuesday after surging over 20% during last week’s trading. Intel seeking investment from Apple (AAPL) had sent the chipmakers stock up.
Newmont Corp. (NEM) shares fell 3% premarket after announcing a change to their leadership on Monday, with the exit of Newmont’s CEO, Tom Palmer, on Dec. 31.
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Google’s YouTube to pay $24.5 million to settle Trump Jan. 6 lawsuit
Google-owned YouTube has agreed to pay $24.5 million to settle a lawsuit filed by President Trump, after he was suspended from the video platform following the Jan. 6, 2021 riot.
Shares in parent company Alphabet (GOOG, GOOGL) were little changed in premarket trading after the deal was disclosed on Monday.
The settlement resolves Trump’s claim that the banishment from his channel amounted to illegal censorship.
It also makes Google’s YouTube the last of the three social-media giants sued by Trump to settle over Jan. 6 bans. Meta (META) agreed to pay $25 million to end a Facebook-related suit in January, while X laid out about $10 million in February over a Twitter suspension, according to The Wall Street Journal.
Bloomberg reports:
Read more here.
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Gold reaches new record with government shutdown fears driving haven demand
Bloomberg reports:
Read more here.
