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Spooked by Italy's impending showdown with the European Union and its potential impact on global banking stocks, US stock futures were trading lower on Tuesday, jeopardizing the Dow's three-day winning streak.

European equities unraveled early Tuesday morning after Italian Euro-skeptic and Lega party member Claudio Borghi endorsed Italy's adoption of its own currency. Although Borghi tried to walk back his inflammatory remarks, selling pressure had already spread across the EU, driving Italian yields to four-year highs and EU bank stocks sharply lower. The defensive tone quickly permeated US markets, amplified by a warning from Goldman Sachs that "contagion risks for Europe have risen" as well as by further deterioration in Monday's USMCA-fueled rally.

The US session is punctuated by Fed-speak from Fed vice chairman for supervision Randal Quarles at 10am ET and more importantly, Fed Chairman Jerome Powell at noon ET. Powell is delivering a speech at the 60th annual National Association for Business Economics in Boston, and will most likely touch on monetary policy in the wake of last week's 25 basis point rate hike.

No economic data is scheduled for today.

In equities, addressing criticism for its pay disparity, Amazon ( AMZN ) raised the minimum wage for all US employees to $15 per hour. The company said the increased pay will be reflected in its forward quarterly guidance. Shares of the online retailer were unchanged in premarket.

Walgreens ( WBA ) and Kroger ( KR ) are partnering on a pilot program that will combine the grocery and pharmacy businesses allowing Kroger customers to order online and pick up orders at Walgreens stores across Northern Kentucky. Accordingly, shares of Kroger are nearly 2% higher in premarket trade.

-Dow Jones Industrial up 0.19%

-S&P 500 futures down 0.12%

-Nasdaq 100 futures down 0.22%

SENTIMENT

Nikkei up 0.10%

Hang Seng down 2.38%

Shanghai Composite closed

FTSE-100 down 0.28%

DAX-30 down 0.60%

PRE-MARKET SECTOR WATCH

(-) Large cap tech: Lower

(-) Chip stocks: Lower

(-) Software stocks: Lower

(-) Hardware stocks: Lower

(-) Internet stocks: Lower

(+/-) Oil stocks: Flat to Higher

(-) Biotech stocks: Lower

(-) Drug stocks: Lower

(-) Financial stocks: Lower

(-) Retail stocks: Lower

(-) Industrial stocks: Lower

(-) Airlines: Lower

(-) Autos: Lower

UPSIDE MOVERS:

(+) DTEA (+36.47%) Reversing Monday's losses

(+) NNDM (+11.98%) Sold two additional manufacturing systems to US Armed Forced

(+) CLVS (+7.00%) Rubraca gets second breakthrough therapy designation from FDA

DOWNSIDE MOVERS:

(-) JAGX (-26.07%) Priced 15 million share offering at $0.60 per share

(-) SFIX (-18.00%) Q4 EPS beat expectations but revenue misses and set Q1 sales in-line to below expectations

(-) ACST (-12.74%) Announced offering of common shares to convertible bond holders

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