Traders work on the floor of the New York Stock Exchange (NYSE) on April 21, 2025 in New York City. After another volatile week on Wall Street, the Dow closed down Monday at over 900 points. (Photo by Spencer Platt/Getty Images)

Shanthi M·Stocktwits

Updated Jul 02, 2025 | 8:31 PM GMT-04

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Negative investor sentiment will likely continue into Wednesday, with the major stock futures trading modestly lower overnight. The absence of any major Main Street catalysts may keep traders on the sidelines, although they might be on the lookout for any developments on the tariff front.

As of 11:04 p.m. ET on Tuesday, the S&P 500, Nasdaq 100, Dow, and Russell 2000 futures were all trading modestly lower.

Crude oil futures topped the $63-a-barrel mark in the overnight session, reacting to reports of Israel preparing to attack Iran’s nuclear sites, while gold futures are seen extending the gains from Tuesday’s session.

The 10-year note yield topped the 4.50% level in overnight trading.

Meanwhile, Asian stocks traded in a mixed manner in early trading.

On the economic front, Richmond Federal Reserve President Tom Barkin and Fed Governor Michelle Bowman are scheduled to participate in the “Fed Listens” event at 12:15 p.m. ET.

Key earnings reports slated for the day are Baidu (BIDU), M Canada Goose (GOOS), Lowe’s (LOW), Medtronic (MDT), Target (TGT), TJX Companies (TJX), Weibo (WB), Wix.com (WIX), Snowflake (SNOW), Urban Outfitters (URBN), and Zoom Communications (ZM).

The S&P 500 Index snapped a six-session winning streak on Tuesday, with nine of the 11 sector classes closing in the red. Defensive consumer staple, utility, and healthcare stocks bucked the downtrend.

The tech-heavy Nasdaq Composite and the Dow Jones Industrial Average also closed in the red, while the Russell 2000 Index ended marginally higher.

The Roundhill Magnificent Seven ETF (MAGS), which tracks the performance of the Magnificent Seven stocks, fell 0.54%, reflecting a pullback in all but Tesla, Inc. (TSLA).

The Elon Musk-led company gained after the billionaire reassured investors in an interview that he plans to lead the electric-vehicle maker for at least five more years.

According to Kristian Kerr, Head of Macro Strategy for LPL Financial, tariff risks linger despite recent positive developments.

“The true economic impact was not possible to accurately assess in real time — leaving the risk that a ‘growth scare’ could still be looming as the actual impacts are better understood,” the strategist said.

Kerr expects greater clarity this summer, given that the full impact of tariffs may not be evident until June or July.

In the event of meaningful economic weakness or any deterioration in trade negotiations, the strategist expects another bout of market volatility, potentially aligning with historical seasonal patterns where equities often struggle from late summer into fall.

The Invesco QQQ Trust (QQQ) ETF dropped 0.33% on Tuesday, and the SPDR S&P 500 ETF (SPY) slipped 0.34%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) moved down 0.25% while the iShares Russell 2000 ETF (IWM) edged up 0.05%.

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