U.S. stock index futures traded close to record highs on Tuesday, taking a pause after two days of gains as investors awaited key corporate earnings and developments from the Federal Reserve.
As of 7:05 a.m. ET, Dow E-minis rose 53 points (0.11%), S&P 500 E-minis slipped 0.01%, and Nasdaq 100 E-minis gained 0.05%. The rally’s momentum eased as traders turned cautious ahead of earnings from Microsoft, Apple, Amazon, Alphabet, and Meta, all due later this week.
Corporate headlines:
- Amazon announced plans to cut 14,000 corporate jobs, while reports suggested Paramount will also begin layoffs.
- UnitedHealth rose 2.7% premarket after raising its annual profit forecast. Peers Elevance Health and Centene added over 1% each.
- United Parcel Service (UPS) surged 9.6% after forecasting fourth-quarter revenue above estimates, with FedEx up 2.3% in sympathy.
- PayPal jumped 12.7% after partnering with OpenAI, allowing ChatGPT users to make instant checkouts.
- Royal Caribbean fell 7.6% following a weak profit forecast, while D.R. Horton slipped 3.4% on lower quarterly profits.
- NextEra Energy gained 2.1% after signing a nuclear energy deal with Google.
Earnings optimism remained high, with 87% of S&P 500 companies that reported last week beating estimates. AI-related updates from major tech firms are expected to be a key catalyst as investors assess lofty valuations and the sustainability of the ongoing rally.
Meanwhile, markets anticipate the Federal Reserve will begin easing policy soon, with traders pricing in a 50 basis-point rate cut by year-end. Fed Chair Jerome Powell is expected to discuss the potential end of quantitative tightening at Wednesday’s policy announcement.
Adding to investor caution, the U.S. government shutdown—now in its fourth week—has delayed several key economic data releases, forcing traders to rely on private reports and corporate updates.
President Donald Trump, currently on an Asia tour, is expected to strike a long-awaited trade deal with China after signing a critical minerals agreement with Japan earlier this week.
