Major U.S. stock index futures suggest a flat opening on Tuesday, with markets likely to remain volatile following a mixed performance in the previous session. Investors appear hesitant to make bold moves as they await developments from ongoing U.S.-China trade talks.
U.S. Commerce Secretary Howard Lutnick expressed optimism, stating that the negotiations are “going well” and are expected to continue throughout the day.
In the absence of significant U.S. economic data, traders are looking ahead to upcoming reports on consumer and producer price inflation for further insights into the economic outlook.
Wall Street Recap: Mixed Trading on Monday
Following Friday’s strong rally, Monday’s trading session saw a subdued performance, with the tech-heavy Nasdaq hitting a new three-month high despite overall market uncertainty.
The Dow Jones Industrial Average dipped slightly by 1.11 points to close at 42,761.76, while the S&P 500 added 5.52 points to finish at 6,005.88. The Nasdaq rose 61.28 points, closing at 19,591.24.
The cautious trading came as markets awaited updates from U.S.-China trade discussions in London. Vice Premier He Lifeng represented China, while Treasury Secretary Scott Bessent, Commerce Secretary Lutnick, and Trade Representative Jamieson Greer led the U.S. delegation.
Key Sector Movements
Semiconductor stocks led the day’s gains, with the Philadelphia Semiconductor Index climbing 2% to a three-month high. Computer hardware stocks also performed well, with the NYSE Arca Computer Hardware Index advancing 1.2%.
Meanwhile, oil service, telecom, and networking stocks showed strength, while utilities lagged behind.
U.S. Economic Calendar
Later today, the Treasury Department will release the results of its $58 billion auction of three-year notes at 1 p.m. ET.
European Markets
European stocks mostly traded lower on Tuesday as U.S.-China trade talks entered their second day.
The STOXX 600 Index declined 0.3%, while Germany’s DAX and France’s CAC 40 fell 0.4% and 0.1%, respectively. In contrast, the U.K.’s FTSE 100 gained 0.5%.
Notable market moves included FirstGroup surging over 7% after announcing a £50 million share buyback and Bellway rising 4.6% on an upbeat revenue forecast. However, defense stocks such as Saab AB and Renk Group AG saw declines, and Barclays slid 1% amid reports of upcoming job cuts.
Asian Markets
Asian markets posted gains on Tuesday, buoyed by positive sentiment from the U.S.-China trade negotiations. However, caution persisted ahead of key U.S. inflation data and the Federal Reserve’s upcoming interest rate decision.
Japan’s Nikkei 225 rose 0.3%, extending its winning streak to three sessions, while South Korea’s Kospi climbed 0.6% on strong performance in defense and shipbuilding stocks. Australia’s S&P/ASX 200 hit a record high, advancing 0.8%.
China’s Shanghai Composite Index edged down 0.4%, reflecting tensions over technology and rare earth shipments. Hong Kong’s Hang Seng Index also closed slightly lower.
Commodities and Currencies
Crude oil prices continued their upward trajectory, with futures climbing $0.43 to $65.72 per barrel. Gold futures also edged higher by $2.90 to $3,357.80 per ounce.
In currency markets, the U.S. dollar traded at 144.52 yen, slightly lower than Monday’s close of 144.57 yen, while gaining modestly against the euro at $1.1429.