U.S. Markets Navigate Geopolitical Tensions and Key Earnings After Steep Selloff

Market Overview - U.S. equity markets are showing signs of cautious stabilization after a significant decline, with major indexes attempting to recover from their worst single-day drops since October [1] - Major indexes experienced steep declines on Tuesday, with the Dow Jones Industrial Average (DJIA) down 1.76%, S&P 500 (SPX) down 2.06%, and Nasdaq Composite (IXIC) down 2.39% [3] Premarket Trading - Premarket trading indicated a tentative recovery, with Nasdaq 100 futures up 0.33%, S&P 500 futures up 0.34%, and DJIA futures up 0.21% [2] - As the market approached opening, sentiment became more volatile, with futures for all major indexes pointing slightly lower [2] Economic Data - Today's economic calendar includes important releases such as housing starts, MBA mortgage applications, building permits, and pending home sales, which are crucial for assessing the real estate sector and broader economic activity [5] Earnings Reports - Key earnings reports are expected from companies like Johnson & Johnson (JNJ), Charles Schwab (SCHW), and Prologis (PLD) before market open, with others like Kinder Morgan and Caci International reporting after market close [6] - Netflix (NFLX) reported better-than-expected Q4 FY25 sales and earnings but saw its stock fall over 5% in premarket trading [8] - United Airlines (UAL) shares rose 3% in premarket trading after a strong earnings report, while Johnson & Johnson (JNJ) shares were down approximately 3% [9] Corporate Developments - Kraft Heinz (KHC) stock dropped 5.5% after a regulatory filing indicated that Berkshire Hathaway (BRK.B) might sell its substantial shares in the company [10] - Major technology firms, including the "Magnificent Seven," experienced declines between 1.2% and 4.3% on Tuesday, with Broadcom (AVGO) down nearly 5.5% [11] Commodity Markets - Gold prices reached a new all-time high near $4,900 per ounce amid geopolitical uncertainty, while WTI crude oil futures hovered around $59.63 per barrel [12] - The U.S. 10-year Treasury yield decreased to approximately 4.26% after closing at 4.30% [12]