From Nasdaq:

U.S. stock index futures pause after sharp rally, with expectations for early interest-rate cuts scaled back. Megacap stocks Apple, Alphabet, and Amazon slip in premarket trading after Nasdaq’s surge on Monday and S&P 500 nears highest closing level. Nvidia also slips after reaching record high.

Data on consumer and producer inflation expected later in the week will offer clues on monetary policy trajectory. Analysts expect more attention on producer inflation figures following downturn in crude oil prices. UBS analysts believe core inflation data suggests the need for a somewhat restrictive monetary policy.

Market participants see 57% chance of Fed slashing rates in March, down from 64% on Monday, amid mixed signals from policymakers. Atlanta Fed President advocates tight monetary policy, while Fed Governor signals willingness to support rate cuts as inflation eases. Fed Vice Chair’s remarks on the policy outlook will also be important.

Earnings from major banks, including JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup, on Friday are crucial for insights into the health of corporate America. Boeing, Delta Air Lines, and American Airlines dip for the second day due to various factors.

Dow e-minis down 174 points, S&P 500 e-minis down 22.75 points, Nasdaq 100 e-minis down 109.5 points. Juniper Networks surges 22.7% after report of possible acquisition by Hewlett Packard Enterprise. Unity Software rises 2% after plans to lay off 25% of its workforce. Netflix drops 2.2% after downgrade by Citigroup. Ride-hailing platforms Lyft and Uber fall after U.S. Department of Labor issues final rule.

(Reporting by Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Pooja Desai)



Read more: US STOCKS-Futures ease after strong rally; inflation data on deck