Futures for the main US stock indexes fell on Tuesday as investors digested President Donald Trump’s decision to impose tariffs on metal imports, ahead of Federal Reserve Chairman Jerome Powell’s testimony and key inflation data.

At 05:15 ET (10:15 GMT), Dow Jones futures were down 90 points (-0.2%), S&P 500 futures were down 18 points (-0.3%) and Nasdaq 100 futures were down 95 points (-0.4%).

On Monday, the indexes closed in positive territory, boosted by a rebound in steel company stocks following Trump’s tariff announcement. The S&P 500 advanced 0.7%, the Nasdaq Composite gained nearly 1%, and the Dow Jones added 0.4%.

Trump Tightens Steel and Aluminum Tariffs

On Monday, President Trump signed executive orders imposing a 25% tariff on steel and aluminum imports, with no exceptions. This revokes previous concessions granted to Canada, Mexico, and Brazil, which were previously subject to quotas.

Additionally, Trump warned that he could extend tariffs to other sectors, including automobiles, semiconductors, and pharmaceuticals, in an effort to align US tariffs with foreign import taxes.

Investors are now assessing the potential impact of these measures on global trade, fearing they could trigger retaliation and escalate trade tensions.

Expectations for the CPI and Powell’s Testimony

The market is eagerly awaiting the Consumer Price Index (CPI) report, set for release on Wednesday, amid growing concerns about the inflationary impact of Trump’s tariffs on the US economy.

The CPI is expected to indicate a slowdown in the monthly growth of consumer prices in January, although core inflation, which excludes food and energy, could rebound from the previous month.

In December, annualized inflation stood at 2.9%, exceeding the Federal Reserve’s target of 2%. Jerome Powell is expected to address this issue when he appears before Congress on Tuesday and Wednesday.

Earnings Season: Coca-Cola in the Spotlight

With more than half of the fourth-quarter earnings season completed, S&P 500 companies are estimated to have achieved 14.8% year-on-year revenue growth, exceeding initial forecasts of less than 10%.

Among the most highly anticipated reports are those from Coca-Cola (KO), Shopify (SHOP), Gilead Sciences (GILD), Lyft (LYFT), and Marriott International (MAR).

Oil Recovers After Weeks of Decline

Oil prices rose on Tuesday, extending the previous day’s gains, driven by concerns over potential supply disruptions. However, escalating tariffs are creating uncertainty regarding their impact on global economic growth.

At 05:15 ET, WTI crude futures were up 1.2% to $73.21 per barrel, while Brent crude climbed 1.3% to $76.83.

Both contracts closed the previous session up nearly 2%, after suffering three consecutive weeks of losses. Supply concerns intensified after Politico reported that European countries may move to confiscate Russia’s “ghost fleet.”