U.S. equities are poised for gains at the open on Tuesday, with futures on the Dow Jones, S&P 500, and Nasdaq all trending upward in pre-market activity. The advance follows a mixed but resilient close on Monday, where tech and broader markets continued to defy recent volatility.
Momentum from recent rallies remains a key driver, as investor optimism has helped propel the Nasdaq and S&P 500 to fresh record highs in recent sessions.
Attention is also turning toward renewed trade discussions between the U.S. and China, currently underway in Stockholm, just days before the deadline for new reciprocal tariffs takes effect on Friday.
President Donald Trump weighed in on trade matters Monday, warning, “most trading partners that do not negotiate separate trade deals would soon face tariffs of 15 percent to 20 percent on their exports to the United States.”
Despite the upward bias, overall market participation may stay muted as investors await clarity from the Federal Reserve, which is set to issue its latest monetary policy decision on Wednesday. While no change in interest rates is expected, any signals about the future path of policy could sway sentiment.
The Labor Department’s upcoming employment data and earnings reports from Big Tech names—including Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Meta Platforms (NASDAQ:META)—are also expected to shape market direction in the coming days.
On Monday, equities opened modestly stronger but drifted sideways through much of the session. The Nasdaq and S&P 500 still managed to notch new all-time closing highs, underscoring persistent bullishness in key sectors.
At the close, the Nasdaq added 70.27 points, or 0.3%, to finish at 21,178.58. The S&P 500 edged up 1.13 points, or less than 0.1%, to end at 6,389.77. The Dow Jones Industrial Average slipped 64.36 points, or 0.1%, to settle at 44,837.56.
Markets were encouraged earlier in the day by the announcement of a last-minute trade agreement between the U.S. and European Union, along with indications that Washington and Beijing may extend their existing tariff pause by another 90 days.
The new U.S.-EU accord reportedly includes a 15% tariff on European goods—down from the initially proposed 30%. In return, the EU has pledged to purchase $750 billion worth of American energy and inject an additional $600 billion into the U.S. economy.
Energy stocks surged in response to the deal, with the NYSE Arca Oil Index up 2.1% and the Philadelphia Oil Service Index climbing 1.8%. The rise in crude oil prices contributed to the sector’s strong performance.
Semiconductor stocks also stood out, as the Philadelphia Semiconductor Index gained 1.6%. Computer hardware names followed suit with solid gains, while sectors such as gold mining, steel production, and commercial real estate experienced notable losses.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.