Stock futures slide
U.S. stock markets look likely to start the holiday-shortened week on a negative note, as traders continue to focus on the record-high inflation that has prompted some of the world’s most powerful central banks to hike interest rates aggressively.
As of 5:30 a.m. ET, Dow futures pointed to an opening bell drop of 139 points, or 0.45%. S&P 500 futures fell 19.75 points, or 0.52% to 3,807.5 while the tech-heavy Nasdaq 100 futures lost 77 points, or 066% to 11,534.25.
U.S. stock and bond markets were closed on Monday, as traders celebrated the country’s 264th independence day.
Major events to watch this week include the Federal Reserve’s minutes for its June policy meeting and the monthly jobs report.
Biden reportedly weighing Chinese tariff relief
President Joe Biden is expected to ease some tariffs on Chinese imports soon, according to the Wall Street Journal.
The Journal said that Biden could announce a tariff rollback this week, but a decision isn’t final and the announcement could be postponed.
People familiar with the matter told the news outlet that possible steps include lowering tariffs on several categories of consumer products, ranging from school supplies to clothing.
According to the people, the president could also launch a broad framework to allow importers to request tariff waivers.
The report comes as the Biden administration continues to grapple with red-hot inflation, which hit a 40-year high of 8.6% in May.
Crude futures tumble on recession fears
Meanwhile, crude future were also in the red territory on Tuesday morning amid concerns of a possible global recession that could hurt fuel demand.
As of writing, U.S. West Texas Intermediate (WTI) crude futures were down 46 cents, or 0.42% to $107.97 a barrel. Global Brent crude futures fell $1.74, or 1.53% to $11.76 a barrel.
Citi analysts said in a note early Tuesday that oil prices could slump to $65 a barrel by the end of the year and collapse to $45 by the end of 2023 if the global economy falls into a recession.
The analysts based their outlook on a decline in oil investments and an absence of any intervention by the OPEC+ oil cartel.