U.S. equity futures edged slightly higher early Tuesday as markets geared up for a high-stakes session featuring earnings reports from top Wall Street banks and the latest consumer inflation data. Investors are also digesting upbeat growth figures from China and a key update from Nvidia regarding its AI chip sales in the Chinese market.
Markets Tread Water Ahead of Busy News Day
Futures contracts tied to the major U.S. stock indices posted modest gains before the opening bell. As of 03:35 ET, Dow Jones Industrial Average futures were little changed, while S&P 500 futures ticked up 16 points (0.3%) and Nasdaq 100 futures added 99 points (0.4%).
Wall Street closed slightly higher on Monday, helped by optimism around artificial intelligence developments that offset concerns over looming U.S. trade restrictions. Notably, Meta CEO Mark Zuckerberg said the company plans to pour “hundreds of billions” into AI infrastructure, and reports emerged of a $70 billion AI and energy investment initiative spearheaded by President Donald Trump.
Investor focus is now squarely on the upcoming earnings season, especially as companies begin to quantify how geopolitical risks and tariff uncertainties are affecting their outlooks. Analysts at Vital Knowledge noted that results from early reporters such as Delta Air Lines and Levi Strauss have been “promising,” but they also flagged profit warnings from multiple European chemical firms.
Big Banks Kick Off Earnings Season
The spotlight now turns to America’s biggest financial institutions, with JPMorgan Chase, Citigroup, Wells Fargo, and BlackRock all set to release their quarterly results before the market opens.
These earnings are widely seen as an early indicator of the broader economic landscape. According to Reuters, analysts expect small to moderate increases in net interest income (NII)—a crucial metric that reflects how much banks earn from lending versus what they pay on deposits.
Despite potential disruptions from Trump’s aggressive trade agenda and geopolitical flare-ups in the Middle East, the U.S. economy appears to have maintained momentum through the second quarter. Inflation has remained controlled, and employment trends are stable, although upcoming tariffs planned for early August could cast a shadow over future economic performance.
Inflation Numbers on Deck
Beyond earnings, the market is closely watching June’s consumer price index (CPI) report, which is due later in the day. Economists anticipate an annual increase of 2.6%, up from 2.4% in May, with monthly inflation rising 0.3%—a step up from the prior month’s 0.1%. Core CPI, which excludes food and energy, is expected to come in at 3.0% year-over-year and 0.3% month-over-month.
Analysts at ING suggested that any market reaction might hinge more on perceived ripple effects from Trump’s tariff strategy than on the numbers themselves. “Investors are also factoring in front-loaded demand from businesses that rushed orders ahead of April’s ‘Liberation Day’ tariff plans,” the firm wrote.
China’s Economy Holds Steady Despite Headwinds
In international news, China’s second-quarter GDP slightly outpaced expectations, expanding by 5.2% year-on-year compared to the projected 5.1%. On a quarter-over-quarter basis, GDP grew 1.1%, beating forecasts of 0.9%, and placing first-half growth at 5.3%—in line with Beijing’s full-year target.
Strong export performance helped shield the Chinese economy from the worst of U.S. tariff impacts during May and June. Although recent trade talks between Washington and Beijing suggest a thawing of tensions, analysts warn that soft domestic demand and a persistent property market slump could limit future momentum unless more stimulus measures are introduced.
Nvidia Readies China Comeback with H20 AI Chip
Chipmaker Nvidia (NASDAQ:NVDA) revealed plans to resume sales of its H20 artificial intelligence processor in China, signaling a potential breakthrough in tech trade relations between the U.S. and China. The announcement came after CEO Jensen Huang met with government officials from both countries.
The company also unveiled a new GPU aimed at powering AI solutions in Chinese smart factories and logistics networks. Nvidia shares jumped 3.6% in after-hours trading following the news.
Nvidia said it is in the process of filing applications to reintroduce the H20 in China, with assurances from Washington that the required export licenses will be granted. This follows recent moves by the U.S. to ease some semiconductor export restrictions, also benefiting firms like Synopsys, which have since resumed business in the region.
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