U.S. stock futures were little changed early Tuesday, pointing to a subdued open on Wall Street as investors paused following two strong sessions that pushed major indexes back toward record highs.
After the recent rally, market participants appear more hesitant to extend gains ahead of key economic and political developments, including ongoing U.S.–China trade tensions and the protracted government shutdown.
With few U.S. economic releases this week due to the shutdown, traders are looking ahead to Friday’s consumer price inflation data — a report expected to help shape expectations for the Federal Reserve’s policy outlook. Markets currently expect rate cuts at the Fed’s next two meetings, with CME Group’s FedWatch Tool pricing in a 97.8% probability of a quarter-point cut next week and a 95.5% chance of another in December.
On the corporate earnings front, General Motors (NYSE:GM) jumped in premarket trading after topping third-quarter earnings forecasts and raising its full-year guidance. Coca-Cola (NYSE:KO) also traded higher after delivering better-than-expected results. Meanwhile, Northrop Grumman Corporation (NYSE:NOC) may see some weakness despite strong earnings, as revenues fell short of projections.
The cautious tone comes after a robust session Monday that saw all three major indexes post solid gains: the S&P 500 advanced 1.1% to 6,735.13, the Dow Jones Industrial Average rose 1.1% to 46,706.58, and the Nasdaq Composite surged 1.4% to 22,990.53.
Apple (NASDAQ:AAPL) was one of the day’s key drivers, climbing nearly 4% to a record close after Loop Capital raised its rating to “Buy,” citing robust demand for the iPhone 17 lineup.
Political headlines also lent support to sentiment. National Economic Council Director Kevin Hassett told CNBC’s “Squawk Box” that the government shutdown could end this week, signaling optimism around potential bipartisan movement in Congress.
Trade headlines added further momentum. The Wall Street Journal reported that the Trump administration has quietly eased some of its tariff measures by exempting dozens of products and signaling more carve-outs in future trade deals.
In sectors, steel stocks led the charge, pushing the NYSE Arca Steel Index up 3.5% as Cleveland-Cliffs (NYSE:CLF) skyrocketed 21.5% after announcing plans to explore rare earth mining. Gold miners also advanced as bullion rebounded, lifting the NYSE Arca Gold BUGS Index 3%.
Airlines, banks, oil services, and semiconductor names also contributed to Monday’s rally, underscoring the broad strength across sectors heading into Tuesday’s quiet session.