U.S. Stock Markets Wobble Amid Economic Uncertainties

U.S. stock index futures saw a slight recovery following dramatic drops in Wall Street indices driven by economic uncertainties and disappointing forecasts from major retailers and airlines. A volatile environment persists with concerns over trade policies, inflation, and potential federal government disruptions impacting investor sentiment.

U.S. stock index futures experienced a slight uptick on Tuesday morning following a steep one-day decline in the major Wall Street indices on Monday. The S&P 500 suffered its most significant drop since December due to fears surrounding the Trump administration's trade policies potentially igniting a trade war.

Retailer Kohl's predicted a sharp decline in sales, while Delta reduced profit forecasts, highlighting economic jitters. These developments contributed to notable declines in United and American Airlines, increasing concerns about a slowing economy.

Meanwhile, the focus remains on upcoming economic reports and Capitol Hill negotiations to prevent a federal government shutdown. Amid volatility, stock valuations are still significantly above historical averages, pointing to ongoing market tensions.

(With inputs from agencies.)