US equity futures experienced a downturn on Tuesday, reflecting market anxiety as President Donald Trump's tariff plan against Canada and Mexico officially takes effect. Traders are also eagerly anticipating fresh labor market data later in the week. The Standard & Poor's 500, the Dow Jones Industrial Average, and the Nasdaq each dipped by 0.1% in premarket activity.
Notably, the majority of Asian exchanges displayed a downward trend while European indices were tracking in the red around midday on the continent, further indicating investor caution in the face of evolving trade policies. Starting on Tuesday, Trump's 25% tariffs on imports from Canada and Mexico will impact various sectors, while the US government has reportedly doubled its levy on Chinese imports from 10% to 20%.
This aggressive tariff strategy is expected to have ripple effects across multiple industries and could sway market sentiment in the coming days. With no significant economic reports scheduled for Tuesday, investors are looking ahead to the ADP Employment report for February, which is set for release on Wednesday.
Additionally, the Challenger Job Cut report for February will be available on Thursday, and, crucially, the government’s nonfarm payroll data for the same month is due out on Friday. In the midst of this market activity, Federal Reserve Bank of New York President John Williams is scheduled to speak at 2:20 pm ET, an event that could offer further insights into monetary policy outlook amidst ongoing economic uncertainties. In individual stock performances, shares of Okta ($OKTA) surged by 16% in pre-market trading.
This increase followed the cloud-based access management platform's announcement of a raised fiscal 2026 revenue outlook alongside better-than-expected fourth-quarter results. Conversely, Walgreens Boots Alliance ($WBA) saw a gain of 6.7%, fueled by media reports suggesting the company is nearing a substantial $10 billion go-private deal with Sycamore Partners. Other notable mentions include Sea ($SE), AutoZone ($AZO), Target ($TGT), On Holding ($ONON), Best Buy ($BBY), Genius Sports ($GENI), and Paysafe ($PSFE) which are set to report their latest financial results before market opening.
In addition, CrowdStrike ($CRWD), Flutter Entertainment ($FLTR), and Ross Stores ($ROST) are scheduled to post their earnings after markets close. Before the market opened on Tuesday, bitcoin saw a decline of 2%, settling at $83,987. West Texas Intermediate crude oil also felt downward pressure, dropping 1.3% to $67.49 a barrel.
Treasury yields on 10-year notes retreated by 0.8 basis points to 4.17%, while gold gained 1%, rising to $2,929 an ounce. Market participants will be closely monitoring these price movements as they navigate potential market shifts in response to economic data and geopolitical events..