Shifting Sands: Investors Brace for Economic Reports Amid Market Volatility

U.S. stock futures declined on Tuesday as investors shifted their focus to upcoming economic reports expected to influence the Federal Reserve's monetary decisions. Of particular interest is the August nonfarm payrolls report, which could prove pivotal in shaping expectations for a potential interest rate cut later this month.

With the markets pricing in a strong likelihood of a 25-basis-point rate cut following a weaker-than-expected job report in July, investors have adopted a dovish stance. Yields on long-term U.S. Treasuries have risen, putting additional pressure on equities and raising market volatility.

In the corporate arena, gold mining stocks surged as bullion prices hit a record high, and PepsiCo shares climbed after Elliott Management took a significant stake, planning an activist campaign. Meanwhile, a White House announcement related to the defense department and U.S. manufacturing data for August also weighed on the day's developments.

(With inputs from agencies.)