US stock futures pointed to a weaker open on Tuesday, with the Dow Jones Industrial Average down 0.25% and the Nasdaq down 0.1%, while the first session saw the Dow drop 0.3% to 52,270, the S&P 500 fall 0.1% to 7,612 and the Nasdaq 100 decline 0.3% to 29,130.
Investors were bracing for the Federal Reserve’s third rate meeting under new chair Kevin Warsh. Markets widely expect a 25-basis-point hike that would lift the funds rate to 3.75–4.00%, though Warsh has offered little guidance. The 10-year US Treasury yield climbed to 5.041%, its highest level since 2007, adding pressure across asset classes.
Inflation remains elevated, driven largely by energy costs. Brent crude was trading near $108 a barrel as fresh tensions in the Middle East kept supply concerns alive. A market observer noted rising oil was “the most immediate burden on markets,” reinforcing expectations for further Fed tightening.
Chinese steelmakers called for stricter production limits and inventory draws via the China Steel Association on WeChat, signaling a shift from growth to “reduction and optimization.” Shares of Steel Dynamics rose 4.5% in pre-market US trading on the outlook.
Pharma shares advanced: Eli Lilly climbed 1.5% after Berenberg analyst Kerry Holford recommended buying the stock, saying the market’s expectations for its obesity-drug leadership were high but room remained before the company’s 2026 targets.
Crypto-linked equities sold off as optimism faded over US legislative action this week. Bitcoin fell 1.7%, Coinbase dropped 4% and Bullish lost more than 2%.
European natural gas futures eased 1.5% to EUR 80.80 per MWh on higher Norwegian deliveries and stronger renewable generation. EU gas storage stands at 68.2% of capacity—16.2 percentage points below the five-year average. A 24-hour strike at a French LNG terminal was being partly offset by terminals in the Netherlands and Belgium, said LSEG analyst Dzmitry Dauhalevich.
In Switzerland, the SMI fell 1.22% to 13,708.71, marking its lowest level since mid-June. The broader SPI dropped 1.17% to 19,310.24. UBS led the index’s decline, closing down 4.2%, while Partners Group shed 3.6% to a multi-year low. Julius Bär fell 2.9% and Swissquote 2.5%. Defensive names held up: Swisscom rose 0.3%, Zurich Insurance 0.2% and Swiss Re 0.4%.
Bank stocks were broadly battered after Bank of America CEO Brian Moynihan’s pessimistic comments on sector growth. Deutsche Bank fell as much as 4%, and subsidiary DWS gave up nearly 5%. CMC Markets analyst Andreas Lipkow said Moynihan’s remarks were “sweeping through the international banking scene like a storm.” Nestlé (-1.6%), Novartis (-0.5%) and Roche (-1.2%) failed to provide support, while Medacta dropped 4% following a Deutsche Bank downgrade to Hold.
Across Europe, equities also faced headwinds, and US futures continued to signal a cautious start.
