Dow Jones futures slip due to profit-taking, geopolitical uncertainty

Dow Jones futures decline by 0.12% to trade near 49,150 during the European session on Tuesday, while the S&P 500 remains flat around 6,940, and the Nasdaq 100 futures gained 13% to trade above 25,600. Dow futures fall as traders may be taking profits or adjusting positions. Moreover, lingering uncertainty over economic and geopolitical developments and mixed market signals is weighing on the index.

The Dow Jones climbed 1.23% to a fresh record high on Monday, driven by strong gains in energy and financial stocks after President Donald Trump encouraged US companies to invest in Venezuela’s vast Oil sector. Chevron jumped 5.1%, and Goldman Sachs rose 3.7%, leading the index higher.

Wall Street advanced in regular US trading on Monday as investors largely brushed aside geopolitical risks following the US capture of Venezuelan President Nicolas Maduro. The S&P 500 and Nasdaq Composite rose 0.64% and 0.69%, respectively, supported by gains in technology stocks, with Tesla climbing 3.1% and Amazon adding 2.9%.

Minneapolis Fed President Neel Kashkari said inflation remains too high, though it is gradually easing. Speaking to CNBC on Monday, Kashkari noted the Fed is likely near a neutral rate, warned the unemployment rate could rise from here, and said he expects the economy to remain resilient. Traders await the US labor market report this week, including the Nonfarm Payrolls (NFP) report, for signals on the monetary policy outlook. The consensus forecast sees NFP rising by 55,000 jobs.

The US ISM Manufacturing Purchasing Managers’ Index (PMI) declined for a third straight month, slipping to 47.9 in December 2025, the lowest since October 2024, from 48.2 in November and below expectations of 48.3. The data indicate a faster contraction in US manufacturing activity, driven by declines in production and inventories.