U.S. equity futures slipped on Tuesday as traders braced for the upcoming inflation data, a report that will shape the Fed policy decision next week. The market’s attention shifted from recent earnings chatter to price pressures, prompting a cautious tone across the broader index. Investors priced in a modest downside risk ahead of the numbers, while the Dow slipped about 0.3%.

Tech shares led the decline, extending losses recorded on Monday and dragging the Nasdaq‑100 lower. Companies such as Apple and Microsoft slipped modestly, reflecting investor worry that higher‑for‑longer rates could curb spending on devices and cloud services. The sector’s slump added pressure to the S&P 500, which hovered near a key resistance level.

Analysts expect the inflation reading to either confirm lingering price pressures or signal a cooling trend, each scenario guiding the Fed’s next move on interest rates. A surprise on either side could trigger sharper volatility in both equity and bond markets. As the clock ticks toward the data release, market participants remain on edge, ready to adjust positions for both domestic and international investors.