Stock markets today: Dow, S&P 500 poised for further losses as Fed raises rate-cut doubts

U.S. stock futures retreated on Tuesday, setting the Dow up for another down day as investors reconsidered the outlook for interest rate cuts and braced for the next wave of earnings reports.

Dow Jones Industrial Average futures (YM=F) fell roughly 0.4%, coming off a big closing loss. S&P 500 futures (ES=F) also fell 0.4%, and the tech-heavy Nasdaq 100 (NQ=F) contract fell 0.5%.

Stocks are coming under pressure amid doubts that the Federal Reserve will aggressively cut rates — or even hold them steady — in November. Factors at play include strength in the economy, a cautious FedSpeak and concerns about the financial impact of an increasingly expected Trump election victory.

Amid the uncertainty, the 10-year Treasury yield (^TNX) settled above 4.2% after Monday's sharp gains helped push it above that level for the first time since July. Bond selling has weighed on rate-sensitive stocks like real estate, with rising yields typically a catalyst for stock drawdowns.

General Motors (GM) raised its guidance for the third time this year as buoyant EV sales helped quarterly profit and revenue rates. GM shares rose nearly 1% in premarket trading. 3M ( MMM ), Verizon ( VZ ), and Lockheed Martin ( LMT ) among the top-tier companies reported momentum in the earnings season on Tuesday.

At the same time, expectations are building for earnings from Tesla ( TSLA ) on Wednesday, as Wall Street debates whether the “Magnificent Seven” tech megacaps will drive the stocks' next leg higher.

Despite higher yields, gold (GC=F) prices rallied, on track to recover from Monday's record high. The gains came as investors sought safety as the US presidential election loomed and tensions in the Middle East continued to rise.