At around 03:05 a.m. ET, Dow futures dipped 52 points, indicating a negative open of more than 56 points. Futures on the S&P and Nasdaq were both slightly lower.
Market focus is largely attuned to selling in regional markets, after protests in Hong Kong and a crash in the Argentine peso drove investors to perceived ‘safe haven’ assets like bonds, gold and the Japanese yen.
These safe-haven assets are typically sought to limit one’s exposure to losses in the event of a sharp market downturn.
On Monday, the Dow slumped nearly 400 points to fall back below 26,000, while the benchmark 10-year Treasury yield dipped to 1.63%.
The spread between 2-year and 10-year Treasury yields narrowed to only 6 basis points on Monday, near its lowest level since 2007.
On the data front, the latest NFIB small business optimism survey for July will be released at 6:00 a.m. ET. Annualized and monthly Consumer Price Index (CPI) and core CPI data for July will be released slightly later in the session.
CDK Global, Adaptive Biotech and Change Healthcare are among some of the companies set to report earnings after market close.