US pre-open: Stocks seen muted after Monday's selloff
US futures pointed to a muted open on Wall Street on Tuesday, with investors likely to pause for breath following sharp losses the day before.
At 1225 BST, Dow Jones Industrial Average and S&P 500 futures were down 0.1%, while Nasdaq futures were 0.1% firmer. On Monday, the Dow tumbled 328 points, suffering its worst one-day decline since 29 May and ending the session at its worst level since 4 May as Trump's plans to curb Chinese investment in the US exacerbated jitters about a trade war.
Oanda analyst Craig Erlam said: "While there haven’t been any major developments in the last 24 hours, nothing we’ve heard recently fills investors with any confidence that we’re going to see a de-escalation any time soon. With tariffs already being implemented and US President Donald Trump promising more in retaliation against the European Union and China, it seems the situation is going to get much worse before it improves.
"As it stands, it’s difficult to determine just what impact recent events will have on the economies of those involved, not to mention just how much worse the situation is going to get. What’s clear though is that it’s weighing heavily on risk appetite and if Trump keeps doubling down on his threats against the US trade partners, it could seriously take its toll. Given how closely Trump watches the markets, it will be interesting to see whether he changes his approach if the recent declines continue."
In corporate news, Lee Enterprises looked set to surge at the open after saying it will manage Berkshire Hathaway's newspaper and digital operations in 30 markets from July.
Elsewhere, General Electric was likely to be in focus after announcing plans to spin off its healthcare business and separate its oil services company Baker Hughes.
Salesforce.com could be active following reports that its employees signed a petition asking chief executive CEO Marc Benioff to re-evaluate the company’s contracts with US Customs and Border Protection.
Harley-Davidson could be set for a rebound after it fell sharply on Monday as it warned on the impact of EU tariffs and said it will move the production of thousands of motorcycles outside the US to avoid the tariffs.
Housebuilder Lennar Corp and steel manufacturer Schnitzer Steel Industries were among the companies slated to report ahead of the opening bell.
On the data front, the S&P/Case-Shiller house price index is at 1400 BST, while the Richmond Fed manufacturing index is at 1500 BST.