U.S. Stock Futures Slide Amid Trump Tariff Warning and Weak Earnings

U.S. stock futures dropped on Tuesday following Friday's negative moves. The Dow Jones, S&P 500, Nasdaq 100, and Russell 2000 futures were trading lower. President Trump warned that a record $15 trillion in planned investment would be "immediately cancelled" if courts strike down his tariff policies. The 10-year Treasury bond yielded 4.27%, and the two-year bond was at 3.65%. The FedWatch tool projects an 89.8% likelihood of the Federal Reserve cutting interest rates for the Sept. 17 decision.

U.S. stock futures dropped on Tuesday following Friday's negative moves, as investors grappled with potential tariff policy changes and expectations of a Federal Reserve interest rate cut. The Dow Jones, S&P 500, Nasq 100, and Russell 2000 futures were trading lower, reflecting market uncertainty.

President Trump warned that a record $15 trillion in planned investment would be "immediately cancelled" if courts strike down his tariff policies. This statement added to the market's apprehension, as tariffs have been a significant factor in recent economic discussions. The 10-year Treasury bond yielded 4.27%, and the two-year bond was at 3.65%, indicating a stable yield curve despite the market's concerns.

The FedWatch tool projects an 89.8% likelihood of the Federal Reserve cutting interest rates at its Sept. 17 meeting. This expectation is supported by UBS, which notes that corporate earnings remain strong and that the Federal Reserve's rate-cutting cycle could be a catalyst for the market moving forward [1].

While the S&P 500's forward price earnings ratio is at the upper end of historical ranges, UBS points out that this is supported by robust earnings growth. The firm recommends that investors who are under-allocated to equities consider phasing in and using market dips to add exposure to preferred areas such as U.S. technology, health care, utilities, and financials [1].

Analysts at D.A. Davidson have noted that Google's Tensor Processing Units (TPUs) could be a significant monetization opportunity for Google parent Alphabet. The analyst believes that TPUs are the best alternative to NVIDIA, and a standalone TPU+DeepMind business could be valued at around $900 billion [2].

Costco shares were recently down about 0.1%, but analyst Chuck Grom reiterated his buy target and $1,200 price target on the stock, implying shares could jump more than 27% from Friday's closing level [3]. Morgan Stanley stands by Voya Financial as a "favorite name," with the analyst noting the company's near-term set-up and long-term potential [4].

Bitcoin edged higher by 1% to reclaim the $111,000 level, as stocks fell and gold shot to a new record. The cryptocurrency's market dominance could return if the Federal Reserve cuts interest rates at its Sept. 17 meeting [5].

Shares of Frontier Airlines popped around 13% in midday trading Tuesday after Spirit Airlines filed for Chapter 11 bankruptcy protection for the second time in a year. Deutsche Bank upgraded Frontier to buy from hold, saying the carrier is "best-positioned to be the biggest beneficiary of Spirit's bankruptcy" [6].

References:
[1] https://www.cnbc.com/2025/09/01/stock-market-today-live-updates.html
[2] https://www.cnbc.com/2025/09/01/stock-market-today-live-updates.html
[3] https://www.cnbc.com/2025/09/01/stock-market-today-live-updates.html
[4] https://www.cnbc.com/2025/09/01/stock-market-today-live-updates.html
[5] https://www.cnbc.com/2025/09/01/stock-market-today-live-updates.html
[6] https://www.cnbc.com/2025/09/01/stock-market-today-live-updates.html