Wall Street was pointing toward losses Tuesday morning, the Associated Press reports, ahead of a two-day meeting of the Federal Reserve. The Fed is facing the diametrically opposed challenges of potential inflation and a softening employment landscape. Futures for the S&P 500 lost 0.7%, and futures for the Dow Jones Industrial Average retreated 0.6%. Nasdaq futures slid 1%.
The Fed is expected to hold its benchmark interest rate steady for the third consecutive meeting after trimming them three times to close out 2024. Uncertainty over President Donald Trump’s trade policy — namely tariffs — has officials concerned about a potential resurgence of inflation, which has been hovering just above the Fed’s target rate of 2%.
Meanwhile, a growing number of U.S. corporations are pulling guidance due to uncertainty about what the tariffs will bring, and spelling out the economic hits they’ll take.
Shares of Ford Motor Co. fell 2.5% before the bell after the automaker said Monday it expects to take a $1.5 billion hit to its operating profit from tariffs this year.
Clorox sank 3.2% after it missed sales and profit targets in its most recent quarter and lowered its forecast to reflect “macroeconomic uncertainty” related to tariffs.
DoorDash tumbled more than 5% in premarket after the food delivery app said it was acquiring Britain’s Deliveroo.
U.S. benchmark crude oil picked up $1.23 to $58.36 per barrel, while Brent crude, the international standard, surged $1.27 to $61.50 per barrel.
