S&P 500 Futures Steady Ahead of Major Bank Earnings; South Korea's Kospi Falls Below 6,000

In Asia, South Korea's Kospi index fell over 6%, dropping below the 6,000 mark and reaching its lowest level since July 31, while the small-cap Kosdaq decreased by 4.23%. Japan's Nikkei 225 index declined by 2.63% and the Topix index slipped by 0.49%. Australia's S&P/ASX 200 also dropped, falling by 0.29%.

Earnings reports are anticipated from large banks including JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo ahead of the market opening on Tuesday. UnitedHealth, a member of the Dow, is also set to report. Analysts predict that S&P 500 profits may grow nearly 30% compared to the same period last year, according to FactSet. According to Anthony Saglimbene, Chief Market Strategist at Ameriprise, three key sectors will influence investor sentiment: banks (reflecting consumer and business health), big tech (particularly AI monetization), and energy (the sustainability of profits from oil).

On Tuesday, investors will also focus on existing home sales data and remarks from Federal Reserve officials Christopher Waller, Tom Barkin, and Susan Collins. Later in the week, inflation data for September will be released, which could impact Treasury yields after they recently reached multidecade highs. The U.S. bond market was closed Monday for Indigenous Peoples' Day.

Wall Street concluded the previous trading session with mixed results. The Dow gained over 195 points, while the Nasdaq Composite and S&P 500 faced declines due to drops in memory stocks.

The Korea Exchange briefly halted trading on the Kospi after a sell-side sidecar was activated, triggered by a more than 5% decline in the Kospi 200 futures index.

Asian technology stocks mirrored the downturn seen on Wall Street as traders anticipated U.S. inflation data later this week. In Japan, SoftBank Group fell by 6.7%, and Tokyo Electron declined by more than 5%. Advantest lost 6.1%, while Kioxia, a memory chipmaker, faced an 8.8% drop. In South Korea, SK Hynix and Samsung Electronics dropped 6.5% and 5.6%, respectively.

Asia-Pacific markets traded lower on Tuesday, with Japan's Nikkei 225 falling by 1.20% at the market open and the Kospi declining by 3.29%. The small-cap Kosdaq decreased by 2.49%, while Australia's benchmark S&P/ASX 200 opened down by 0.33%.

Concerns over rising oil prices following a recent attack in Saudi Arabia have also influenced market sentiment, with Brent crude approaching $106 per barrel.

Looking ahead to earnings reports, JPMorgan Chase is expected to show double-digit earnings growth, while Goldman Sachs, Citigroup, and Wells Fargo are also forecasted to report increases in earnings, according to LSEG data.

Shares of Syndax Pharmaceuticals fell by 15% after the company announced that its Phase 2 trial for axatilimab, aimed at treating idiopathic pulmonary fibrosis, did not meet its primary endpoint. This drop could result in the stock's worst day since May 6, 2025, if losses persist.