US stock futures tick down on weak economic data, new tariff threats

Published 06/08/2025, 01:34
© Reuters

Investing.com-- U.S. stock index futures were slightly down on Tuesday evening after Wall Street ended lower, dragged by weaker-than-expected economic data and fresh tariff threats by President Donald Trump.

Investors also weighed key earnings from AMD, Palantir, and others, as the second-quarter reporting season nears its end.

S&P 500 Futures inched 0.1% lower to 6,319.75 points, while Nasdaq 100 Futures fell 0.3% to 23,064.75 points by 20:10 ET (00:10 GMT). Dow Jones Futures were largely unchanged at 44,239.0 points.

Wall Street slips after weak PMI, trade balance data

In the regular trading session on Tuesday, the S&P 500 fell 0.5%, while the NASDAQ Composite declined 0.7%. The Dow Jones Industrial Average ended 0.1% lower.

Wall Street experienced large swings in the past few sessions, with Friday’s losses on weak jobs data followed by a Monday rebound on Fed rate cut bets.

Stock markets were under pressure on Tuesday as Trump proposed a "small tariff" on pharmaceutical imports, with potential hikes later, and hinted at chip tariffs within a week.

Meanwhile, the Institute for Supply Management’s non-manufacturing purchasing managers’ index unexpectedly fell to a reading of 50.1 in July from 50.8 in the prior month, confounding expectations for a reading of 51.5. 

The weak reading on services, which makes up about 80% of economic growth, triggered fresh worries about the economy at a time when many expect that the Federal Reserve will resume rate cuts in September. 

Rate cut expectations rose after last week’s weak payrolls data and comments from San Francisco Fed President Mary Daly, who signaled openness to a September cut.

Moreover, data on Tuesday showed that the U.S. trade deficit narrowed by more than anticipated in June, reflecting a dip in imports at the end of the second quarter following a tariff-fueled rise in incoming goods earlier in the year.

Earnings season nears end; AMD shares slip on missing estimates

A strong second-quarter earnings season, coupled with sanguine tariff comments from some executives, has helped support Wall Street.

Palantir Technologies (NASDAQ:PLTR) shares jumped nearly 8% on Tuesday after the company posted record quarterly revenue, driven by strong demand for its AI-powered services from governments and businesses.

Meanwhile, in after-hours trading, Advanced Micro Devices (AMD) (NASDAQ:AMD) shares fell over 6% after Q2 results missed high expectations, though its outlook beat estimates on strong AI and data center demand.

Elsewhere, Pfizer (NYSE:PFE) shares rose 5.1% after it beat Q2 earnings and revenue estimates and raised its full-year profit forecast.

As earnings season nears its end, investors await key reports on Wednesday from Walt Disney (NYSE:DIS), McDonald’s (NYSE:MCD), and Uber (NYSE:UBER).

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