U.S. stock futures traded slightly higher on Tuesday, steadying after recent market swings as investors digested more corporate earnings reports.
At 09:35 ET, the Dow Jones Industrial Average rose 60 points (0.1%), while the S&P 500 and NASDAQ Composite each gained 0.1%.
Markets rallied on Monday, rebounding from last week’s sharp decline driven by renewed trade tensions and weaker-than-expected U.S. jobs data.
Fed Rate Cut Hopes Lift Sentiment
Investor optimism has improved this week, supported by expectations that the Federal Reserve may cut interest rates in September. According to the CME FedWatch Tool, markets are now pricing in a 90% chance of a rate cut next month, up from 63% just a week ago.
Although President Donald Trump reignited trade worries on Monday by threatening higher tariffs on Indian goods over the country’s imports of Russian oil, investors focused more on the prospect of monetary easing from the Fed.
On the economic front, attention turns to the ISM non-manufacturing PMI, expected to rise slightly to 51.5 in July from 50.8 in June. A reading above 50 indicates expansion in the U.S. services sector, which makes up over two-thirds of the economy.
Separately, the U.S. trade deficit narrowed significantly in June, falling by 16% to $60.2 billion, compared to $71.7 billion in May. Economists had forecast a smaller decline to around $62.6 billion. The improvement was largely due to a drop in imports after a surge earlier in the year driven by tariffs.
Palantir Leads Corporate Earnings
Second-quarter earnings have generally been strong, with positive results helping to support markets.
Palantir Technologies (PLTR) shares jumped after the company posted its highest-ever quarterly revenue since going public. Strong demand from both government and corporate clients for its AI-powered software boosted results. The company has also benefited from the U.S. government’s push to expand artificial intelligence usage and the Pentagon’s preference for working with new tech providers.
Other notable earnings:
- Pfizer (PFE) rose after beating earnings and revenue expectations and raising its full-year profit outlook.
- Marriott International (MAR) gained after reporting better-than-expected earnings, despite slightly lowering its full-year guidance due to weaker business travel and reduced government spending.
- Caterpillar (CAT) declined as its adjusted Q2 earnings missed forecasts, though revenue came in above expectations.
Oil Prices Continue to Slide
Oil prices fell again on Tuesday, extending recent losses following OPEC+‘s decision to increase output despite concerns over global demand.
At 09:35 ET, Brent crude was down 1% to $68.10 a barrel, while West Texas Intermediate (WTI) dropped 1.1% to $65.57. Both benchmarks fell more than 1% on Monday, marking their fourth straight day of declines and their lowest levels in a week.
On Sunday, OPEC+ announced it would raise production by 547,000 barrels per day in September, effectively reversing its largest output cuts—about 2.5 million bpd, or 2.4% of global demand.
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