Trade Tensions and Earnings Season Shape Market Landscape

U.S. stock index futures slipped, impacted by renewed U.S.-China trade tensions. Additional port fees on shipping firms and the looming threat of 100% tariffs have soured investor sentiment. The earnings season and Federal Reserve Chair Powell's upcoming speech will be critical in assessing the economic outlook.

U.S. stock index futures experienced a downturn on Tuesday, disrupted by fresh worry over escalating U.S.-China trade tensions. The previous session's partial recovery was overshadowed as both nations began implementing additional port fees impacting global shipping firms.

Risk sentiment took a hit after President Donald Trump threatened 100% tariffs on Chinese imports. This threat came amid Beijing's export controls on rare earth metals, contributing to Wall Street's negative reaction.

Investor focus is turned towards the ongoing earnings season and upcoming speech by Federal Reserve Chair Jerome Powell for indications on U.S. monetary policy. Major banks like JPMorgan and Goldman Sachs will report their quarterly earnings, providing insights as government data releases delay due to a shutdown.

(With inputs from agencies.)