Wall Street futures headed lower after a major U.S. retailer blamed its grim forecast on tariff concerns and oil prices rose.

Asian shares fell Monday and U.S. futures and the dollar weakened after Moody’sRatings downgraded the sovereign credit rating for the United States because of its failure to stem a rising tide of debt.

The major U.S. index futures on the Dow Jones, S&P and Nasdaq are currently pointing to a lower open on Wednesday, with stocks likely to see further downside following the moderate pullback in the previous session.

U.S. markets edged lower in trading before the opening bell as the last few major companies report earnings amid a dearth of market-moving news

Stock markets have largely shrugged off Moody’s Ratings stripping the U.S. of its last triple-A credit rating.

Wall Street share futures slipped with the dollar on Monday and Treasury yields rose as concerns about erratic U.S. economic policies were underlined by Moody's downgrade of the country's credit rating.

The S&P 500 is now just 3% from its record high despite continued uncertainty around the impact of tariffs on the economy.

Asia-Pacific markets were set to trade mixed Wednesday after Wall Street halted its six-day win streak. Japan's benchmark Nikkei 225 is set to open higher, with the futures contract in Chicago at 37,595 while its counterpart in Osaka last traded at 37,590, against the index's last close of 37,529.49.

Wall Street's main indexes opened lower on Tuesday as investors awaited commentary from Federal Reserve officials through the day to assess the potential impact of U.S. President Donald Trump's tariffs in the second half of 2025.