U.S. futures fall as stocks mixed on U.S. Fed and earnings

U.S. equity futures declined and stocks were mixed Tuesday as investors braced for tighter monetary policy, while also weighing geopolitical tensions and earnings reports.

U.S. equity futures declined and stocks were mixed Tuesday as investors braced for tighter monetary policy, while also weighing geopolitical tensions and earnings reports. 

Contracts on all three major U.S. gauges fell, with those on the Nasdaq 100 down more than two per cent as tech giants including Apple Inc. and Microsoft Corp. dropped in premarket trading. General Electric Co. declined after missing sales expectations, while NVIDIA Corp. slid as people familiar with the matter said it’s quietly preparing to abandon its purchase of Arm Ltd. from SoftBank Group Corp. 

European equities rebounded from their worst drop since June 2020, buoyed by stronger-than-forecast profit at telecom firm Ericsson AB, while Asian shares slid as Japan’s Topix entered a correction. 

The Cboe Volatility Index, known as the VIX, rose for a sixth session on Tuesday, after briefly jumping intraday to the highest since October 2020 on Monday. The yield on 10-year Treasuries was little changed, while the dollar ticked up.

Volatility is hitting markets ahead of a key Federal Reserve meeting Wednesday, with U.S.-Russia tension over Ukraine also buffeting sentiment. Global equities at one point wiped almost US$3 trillion on Monday, with the S&P 500 down more than 10 per cent from a record high, before a dramatic reversal saw major U.S. benchmarks end in the green.