U.S. Stock Index Futures Rebound

By Lisa Pauline Mattackal and Purvi Agarwal

(Reuters) – U.S. stock index futures rebounded on Tuesday after a decline in equities prompted by President Donald Trump’s escalating criticism of Federal Reserve Chair Jerome Powell.

All three major indexes closed Monday more than 2% lower following Trump’s renewed attacks on Powell for not cutting interest rates, raising concerns about the central bank’s independence and future monetary policy direction.

Investor sentiment remained fragile as they awaited Trump’s next moves concerning Powell, as well as clarity on U.S. tariff policies and the outcomes of negotiations with individual countries.

Trump’s legal authority to dismiss the Fed chair is still uncertain.

Recent trends show investors retreating from U.S. assets, while safe-haven investments like gold have surged. Despite this, the dollar and U.S. equities have declined, whereas Treasury yields have increased.

Kathleen Brooks, research director at XTB, noted that “the market is pricing in a political risk premium for U.S. assets,” which is contributing to significant anxiety among investors, negatively impacting equities and overall market sentiment.

Investors are also looking forward to numerous corporate results this week to gauge how companies are managing the uncertainty due to tariffs and predicting earnings impacts.

Verizon (NYSE: VZ) fell 3.6% after announcing a sharp increase in quarterly subscriber loss, while Northrop Grumman (NYSE: NOC) dropped 8.7% following its quarterly results.

In contrast, Tesla (NASDAQ: TSLA) rose 0.8% in premarket trading; it will start reporting earnings for the group of major stocks known as the “Magnificent Seven” after the markets close.

Market analyst Josh Gilbert of eToro emphasized that clarity on auto tariffs, Elon Musk’s role in the Trump administration, and the introduction of more affordable EVs are crucial for Tesla’s future.

As of 06:56 a.m. ET, Dow E-minis gained 298 points (0.78%), S&P 500 E-minis increased by 46.5 points (0.90%), and Nasdaq 100 E-minis rose by 166.5 points (0.93%).

Megacap tech stocks, significantly affected by the Monday selloff, also witnessed rebounds. Nvidia (NASDAQ: NVDA) was up 1.2%, Amazon (NASDAQ: AMZN) increased 1.1%, and Apple (NASDAQ: AAPL) gained 1%.

First Solar (NASDAQ: FSLR) surged 7.1% after U.S. trade officials implemented strict tariffs on most solar cells imported from South Asia.

U.S. indexes have faced sharp declines this year due to Trump’s unpredictable trade policies, with the S&P 500 currently 16% below its record high from February 19. A further drop of 20% would confirm a bear market.

Earlier this month, the Nasdaq Composite already confirmed its entry into bear market territory.

Throughout the day, remarks from five Federal Reserve officials, including Vice Chair Philip Jefferson, are anticipated, and investors will closely monitor these comments for insights into the Fed’s policy outlook amid rising tensions with the White House.