Stock futures retreated Tuesday as a decline in bank shares dampened investor sentiment.
Futures for the Dow Jones Industrials staggered 252 points, or 0.7% to 35,302.
Futures for the S&P 500 stumbled 35.25 points, or 0.8%, to 4,502.50.
Futures for the NASDAQ faded 129.75 points, or 0.8%, to 15,355.75.
Bank shares fell broadly after Moody's downgraded the credit rating on several banks, including M&T Bank and Pinnacle Financial. The credit agency also placed Bank of N.Y. Mellon and State Street on review for a downgrade.
Goldman Sachs and JPMorgan Chase traded about 1% lower in the premarket. The SPDR S&P Regional Banking ETF (KRE), which tracks a group of smaller banks, dipped more than 2%.
Earnings season continued. UPS shares dropped 5% after the delivery giant reported weaker-than-expected revenue for the second quarter.
The company also lowered its full-year revenue outlook. Educational tech company Chegg popped more than 23% after reporting second-quarter revenue of $183 million, beating analysts' estimate of $177 million, per Refinitiv.
The corporate earnings season has so far been better-than-expected. Roughly 86% of S&P 500 stocks have reported quarterly results, and nearly 80% of them have beaten Wall Street's expectations, according to FactSet.
On the economic data front, traders are looking ahead to July's consumer price index report, out Thursday. The inflation metric could put Wall Street's belief in a soft landing to the test. Economists polled by Dow Jones are calling for a monthly increase of 0.2% in July and a year-over-year rise of 3.3%.
In Japan, the Nikkei 225 edged up 0.4% Tuesday, while in Hong Kong, the Hang Seng faltered 1.8%.
Oil prices dropped $1.52 to $80.42 U.S. a barrel.
Gold prices dulled $5.50 to $1,964.50 U.S. an ounce.