U.S. equity futures fell on Tuesday, thus retreating from record highs as investors expressed doubts over the longevity of the tech rally as well as the timing of the introduction of interest rate cuts by the Federal Reserve. Futures on the S&P 500 fell 0.3%, while those on the Dow Jones Industrial Average slipped by 0.2%. Contracts on the tech-heavy Nasdaq 100 fell by as much as 0.6%.
Doubts over how long the ongoing tech rally will persist were largely driven by reports that Apple’s iPhone sales in China plummeted by 24%. This update came after the tech giant was hit with a $2 billion EU antitrust fine. Electric vehicle maker Tesla has suffered a production setback of its own following the shutdown of its Berlin Gigafactory, thus adding to shipment concerns.
Investors now await Federal Reserve President Jerome Powell’s testimony to U.S. Congress on Wednesday. Anxiety has risen after Atlanta Fed President Raphael Bostic suggested that there may be as little as one interest rate cut this year, slated for the third quarter. Powell’s address is expected to provide insight into the central bank’s plan of action.
