Global Markets React to Tariffs and Fed Meeting

S&P 500 futures fell early Tuesday as investors awaited the Federal Reserve's policy meeting. The S&P 500 had fallen 0.6% on Monday, snapping its nine-day rally, amid uncertainty over tariffs announced by President Donald Trump. The Dow slipped 0.2% and the Nasdaq Composite dropped 0.7%. Investors are now focused on the Fed's two-day meeting, with traders listening for Fed Chair Jerome Powell's comments on the economic outlook. Earnings reports from DoorDash, Advanced Micro Devices, and Super Micro Computer are also being awaited. After-hours, Palantir Technologies dropped nearly 7% on in-line earnings, Vertex Pharmaceuticals fell 2% on disappointing results, and Mattel declined 2.5% after pausing its 2025 guidance due to tariff uncertainty.

The S&P 500 broke its nine-day winning streak as major U.S. indexes fell, with the S&P 500 losing 0.64%. U.S. President Donald Trump announced a 100% tariff on movies produced outside the U.S., but later walked back his comments, causing shares of entertainment companies like Netflix and Paramount to initially fall. Other news includes Warren Buffett stepping down as Berkshire Hathaway CEO to be replaced by Greg Abel, Palantir reporting earnings that met expectations and hiking its full-year outlook, and Ford Motor beating Wall Street's first-quarter expectations but suspending its 2025 guidance due to Trump's tariffs. Additionally, a Chinese tech ETF may be a better bet than U.S. tech stocks, according to Katie Stockton.

European markets are expected to open lower on Tuesday, with the FTSE 100, DAX, CAC, and FTSE MIB indices all projected to decline. Investors are awaiting earnings reports from major European companies, including Vestas Wind, AXA, and Ferrari, and are also focused on central bank interest rate decisions and global trade developments, including potential US trade deals. Asia-Pacific markets rose overnight, while S&P 500 futures fell, and spot gold rose nearly 1% as investors assessed movements in the dollar.

The S&P 500 ended its nine-day win streak, the longest since 2004, and the Dow Jones Industrial Average dropped on Monday after a nine-day winning streak. Nvidia's CEO Jensen Huang is set to appear on CNBC, and the stock has risen 21% in a month. Canadian Prime Minister Mark Carney's visit to the White House is also in focus, with the iShares MSCI Canada ETF up 11% in a month. Gold futures are up 21% since the November election, and gold mining stocks Kinross Gold and Iamgold are set to report earnings. Oil prices fell after OPEC announced production hikes, with Brent crude at $60 a barrel and West Texas Intermediate at $57 a barrel. The S&P Energy sector is down 6% year-to-date, with Texas Pacific Land Corp being the top performer at 19.5% gain.