U.S. stock futures edge lower
U.S. stock futures drifted near the flatline Tuesday as investors braced for a wave of economic data and corporate earnings in a holiday-shortened week.
As of 03:04 ET, Dow futures were down 26 points (0.1%), S&P 500 futures slipped 11 points (0.2%), and Nasdaq 100 futures dropped 99 points (0.4%). Wall Street’s main indexes were closed Monday for a public holiday.
Markets ended Friday mixed, with investors weighing the broader impact of new artificial intelligence models and questioning whether heavy AI infrastructure spending will generate strong returns for mega-cap tech firms. At the same time, cooler-than-expected U.S. consumer price data for January fueled expectations that the Federal Reserve could bring forward its next interest rate cut after pausing its easing cycle last month. The tech-heavy Nasdaq Composite edged down 0.2%, while the S&P 500 and Dow Jones Industrial Average posted gains.
Crude prices steady ahead of U.S.-Iran negotiations
In commodities, Brent crude ticked lower ahead of planned talks between the U.S. and Iran in Geneva over Tehran’s nuclear enrichment program. A firmer dollar, ahead of key economic releases and signals from the Fed, also weighed on oil prices. Brent for April delivery fell 0.7% to $68.13 a barrel, while West Texas Intermediate futures rose 0.6% to $63.11, with the move partly influenced by Monday’s U.S. market holiday.
U.S. and Iranian officials are scheduled to meet in Switzerland on Tuesday amid elevated tensions in the Middle East, as Washington increases its regional military presence. President Donald Trump has repeatedly warned of potential military action if Iran declines a U.S.-backed agreement.
Trading activity was subdued across Asia due to Lunar New Year holidays in China, Hong Kong, Taiwan, South Korea, and Singapore.
Gold declines
Gold prices moved lower Tuesday, with silver also retreating, as traders stayed cautious ahead of a slate of U.S. economic data due this week.
At 03:09 ET, spot gold fell 1.4% to $4,919.72 an ounce, while April gold futures dropped 2.2% to $4,941.74. Spot silver slid 2.0% to $75.0925 per ounce, whereas platinum edged up 0.2% to $2,024.79.
Precious metals have been volatile in recent weeks, posting sharp swings and remaining well below their late-January highs.
Investor focus is shifting to upcoming U.S. economic releases, along with minutes from the January meeting of the Federal Reserve, when policymakers kept interest rates unchanged at 3.5% to 3.75%.
U.S. industrial production figures are scheduled for release on Wednesday, followed by Friday’s PCE price index report — one of the Fed’s key measures of inflation.
Palo Alto Networks earnings ahead
Attention is also turning to results from Palo Alto Networks, due after U.S. markets close Tuesday, which could offer further insight into the outlook for tech firms grappling with rising competition from newly launched AI models.
The California-based cybersecurity group raised its full-year revenue and profit guidance in November, pointing to strong demand for its digital security solutions amid growing online threats.
Palo Alto also unveiled a $3.35 billion acquisition of cloud management and monitoring firm Chronosphere, saying it plans to fold the business into its Cortex AgentiX platform. The integration is designed to allow Palo Alto’s AI agents to leverage Chronosphere’s data to identify performance bottlenecks and pinpoint root causes more effectively.
Together with a separate agreement to acquire identity security specialist CyberArk Software, the Chronosphere transaction is slated to be finalized in the second half of Palo Alto’s fiscal 2026.
Nikkei extends slide
Japan’s benchmark Nikkei 225 slipped again, adding to Monday’s losses after data showed the country’s economy grew far less than expected in the fourth quarter.
Official figures revealed that gross domestic product expanded at an annualized rate of 0.2% in the October–December period — well below forecasts of 1.6%. Still, the reading marked a rebound from the prior quarter, when the world’s fourth-largest economy contracted by 2.6%.
The weak data highlights the economic hurdles facing Prime Minister Sanae Takaichi following her sweeping election victory earlier this month. While she appears to have secured a mandate to implement stimulus measures aimed at boosting growth, her government must contend with persistent cost-of-living pressures that continue to dampen domestic demand.
Adding to the complexity is the stance of the Bank of Japan, where policymakers are working to address stubborn inflation and yen weakness. Officials have indicated they intend to continue raising interest rates after years of ultra-loose monetary policy.
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