U.S. markets experienced a sharp decline in the previous session following controversial statements made by President Donald Trump against Federal Reserve Chairman Jerome Powell. Trump criticized Powell for failing to take steps to lower interest rates. These comments sparked widespread concern among investors about the independence of the U.S. central bank and the potential impact of future monetary policy on the economy, leading to a drop of over 2% in all major indices.
At the start of Tuesday, U.S. futures saw a slight improvement, but sentiment remained fragile amid ongoing uncertainty about Trump’s possible next moves against Powell. Investors are closely watching developments in U.S. tariff policy, along with trade negotiations with other countries, while it remains unclear whether Trump has the legal authority to dismiss the Federal Reserve Chairman. These factors continue to keep markets in a state of anticipation and persistent anxiety.
This week, investor attention is focused on the earnings results of major companies, which will serve as key indicators of how tariffs are affecting corporate profits. Among the companies reporting this week are Halliburton, Verizon, and 3M, as well as Tesla, which will kick off the earnings season for major tech firms. These results are expected to reflect how these companies are adapting to current economic conditions, which will significantly influence market direction in the near term.
At the same time, equity futures for the Dow Jones, S&P 500, and Nasdaq saw a modest uptick, supported by gains in shares of major tech companies such as Nvidia, Amazon, and Apple. However, markets remain under the influence of persistent unease, as investors continue to seek safety in assets like gold amid ongoing economic instability. In oil markets, Brent crude prices rose by 1.5%, reaching $67.22 per barrel, following a sharp drop in the previous session, amid concerns over U.S. tariff impacts and geopolitical tensions.
Investor focus on Tesla’s earnings this week is particularly significant, as the results will provide crucial insights into the health of the electric vehicle sector. Forecasts suggest that Tesla may face challenges in vehicle demand, in addition to political pressures surrounding CEO Elon Musk. Meanwhile, markets also remain attentive to statements from Federal Reserve officials this week for clues on future monetary policy and economic direction amid current tensions.
