Futures on major U.S. stock indexes indicate a slightly higher open Tuesday, suggesting traders are ready to extend the robust gains recorded in Monday’s session.
Technology shares appear poised to keep climbing after Palantir (NASDAQ:PLTR) posted strong second-quarter results. The software company’s stock jumped nearly 7% in early trading following a nearly 50% increase in Q2 sales, driven by booming demand for artificial intelligence services.
DuPont (NYSE:DD) also showed early gains after delivering better-than-expected earnings and issuing an optimistic outlook for the future.
Conversely, shares of Caterpillar (NYSE:CAT) might slip after reporting earnings that fell short of forecasts, while telehealth provider Hims & Hers Health (NYSE:HIMS) is expected to face pressure after missing revenue expectations for the quarter.
Overall trading activity may be somewhat cautious as investors pause to evaluate recent market swings.
Monday’s market saw strong upward momentum from the open, with major indexes recapturing much of the ground lost over the previous two sessions. The Nasdaq surged 403 points, or 2%, closing at 21,053.58, the S&P 500 climbed 1.5% to finish at 6,329.94, and the Dow rose 1.3%, ending the day at 44,173.64.
The rally was driven by bargain hunters stepping in after last week’s sell-off, which dragged the Nasdaq and S&P 500 well below record highs. The sharp decline last Friday was triggered by worries over President Donald Trump’s new tariffs, disappointing job reports, and a sharp drop in Amazon’s (NASDAQ:AMZN) shares.
Investor optimism that the weak employment numbers might encourage the Federal Reserve to lower interest rates next month also fueled buying activity. According to the CME Group’s FedWatch tool, the likelihood of a quarter-point rate cut in September jumped to nearly 92% from 63% just seven days ago.
On the economic data front, the Commerce Department reported a 4.8% decline in factory orders in June, reversing May’s revised 8.3% increase. Analysts had forecasted a 5% drop after the initially reported 8.2% gain in May.
Networking stocks led the market gains, with the NYSE Arca Networking Index soaring 10% to a record closing level. CommScope (NASDAQ:COMM) stood out, soaring 86.3% after announcing it will sell its connectivity and cable solutions business to Amphenol (NASDAQ:APH).
Gold stocks also rallied on the back of rising bullion prices, pushing the NYSE Arca Gold Bugs Index up 4.7%. Other sectors including software, brokerage, and computer hardware also posted strong gains, contributing to a broadly positive market environment.
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