U.S. Stock Futures Decline Following Gains; Home Depot Earnings in Spotlight

U.S. stock index futures dipped slightly Tuesday following recent gains, as investors awaited key earnings reports from the retail sector.

As of 05:50 ET (09:50 GMT), Dow Jones Futures were down 90 points, or 0.2%. S&P 500 Futures fell 21 points, or 0.4%, while Nasdaq 100 Futures declined 100 points, or 0.5%.

Wall Street’s main indexes ended higher on Monday, shaking off early losses triggered by Moody’s recent credit rating downgrade. The S&P 500 notched its sixth consecutive gain and is now just 3% below its all-time high.

Retail Earnings in Focus: Home Depot Reports

Investor attention turns to the retail sector on Tuesday, with Home Depot (HD) set to report earnings before the opening bell. Markets will closely watch the company’s pricing strategy, especially after Walmart (WMT) signaled potential price hikes in response to tariff-related cost pressures from former President Donald Trump’s trade agenda. Trump countered by stating that Walmart should absorb the cost increases.

Home Depot’s outlook, along with commentary from rival Lowe’s (LOW), will be scrutinized for insight into how tariffs may impact consumer spending on home improvement. Deteriorating consumer sentiment linked to trade tensions has raised concerns about slower growth and higher inflation. Later in the day, homebuilder Toll Brothers (TOL) will post its quarterly results after the closing bell.

Tax Bill Advances in House

A special House committee approved a sweeping tax cut bill on Sunday, positioning it for a potential vote this week. Backed by Trump, the bill proposes income tax reductions alongside increased spending on defense and immigration.

However, critics—including moderate and centrist Republicans—warn the plan could significantly widen the federal deficit, already at historic levels.

Trade Developments in the Spotlight

Markets remain focused on global trade negotiations. Following last week’s U.S.-China agreement, investors await signs of further progress. According to Japan’s Kyodo News, trade talks between Japan and the U.S. are expected later this week.

Meanwhile, Reuters reports that no new trade deals are expected during the upcoming G7 finance ministers’ meeting in Canada. Tensions with China remain elevated after the U.S. Commerce Department warned against the use of Huawei Ascend chips, citing export rule violations. In response, China accused the U.S. of undermining recent trade progress and demanded corrective action.

Oil Prices Edge Lower

Crude prices slipped slightly as traders assessed geopolitical tensions and faltering nuclear negotiations between the U.S. and Iran. As of 05:50 ET, Brent crude was down 0.1% at $65.49 per barrel, while U.S. West Texas Intermediate (WTI) futures also dipped 0.1% to $62.11.

Iran reiterated Monday that its uranium enrichment program is “absolutely non-negotiable,” a major sticking point in talks with Washington. A breakthrough deal could ease sanctions and boost Iranian oil exports, potentially reshaping global supply dynamics.

Investors are also keeping a close eye on the Russia-Ukraine conflict, as a ceasefire could influence energy markets and broader geopolitical risk sentiment.