US pre-open: Stocks retreat as caution sets in, Home Depot rises
By Benjamin Chiou
Date: Tuesday 20 May 2025
(Sharecast News) - US stock futures were pointing to a weaker start on Wall Street on Tuesday, with the S&P 500 poised to retreat after five days in positive territory.
By 0613 ET, Dow futures were down 0.1%, while the S&P 500 and Nasdaq were falling 0.3% and 0.5% respectively.
Markets extended recent gains on Monday, though upside was modest in the aftermath of Moody's decision to downgrade its rating on US government debt, causing bond yields to temporarily spike.
"The downgrade to the US credit rating from agency Moody's and fears about the impact on an already-large deficit of a package of tax cuts making its way through Congress had resulted in a weak start on Wall Street. However, investors soon shrugged off the news to buy the dip and extend a recent winning streak for the S&P 500," said AJ Bell investment director Russ Mould.
"Suggestions this rally was largely driven by retail investor flows raises the question of whether institutions will join in with the buying - something which is probably required if the buying is to be sustained."
With no major economic data scheduled for Tuesday's session, the focus will likely be on scheduled speeches from more Federal Reserve policymakers later on.
Meanwhile, Home Depot futures were rising in pre-market trading despite a mixed quarterly earnings report, after its CFO Richard McPhail told CNBC that the DIY retailer won't need to lift prices as a result of tariffs.
"Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio," McPhail said in a CNBC interview.
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