US stock futures edged higher on Tuesday to begin a holiday-shortened week of trading. Futures for the Nasdaq 100 rose roughly 0.4%, driven by gains in the tech-heavy index. S&P 500 futures increased by 0.3%, aiming for a fresh all-time high in January, while contracts on the Dow Jones Industrial Average remained steady.
The cautious optimism on Wall Street comes after Monday’s closure for President’s Day, as investors debate the future path of interest rates. Fed officials indicated over the long weekend a firm belief in stable economic growth, putting the spotlight on Wednesday’s release of meeting minutes for more clues to policymakers’ thinking amid ongoing policy shifts. At the same time, US-Russia talks on ending the Ukraine war are capturing market attention.
Scheduled meetings between Trump and Putin’s teams in Saudi Arabia on Monday have traders watching closely.
Stock futures rise amid cautious optimism
European stock markets held near record highs, driven by bets on increased defense spending in the region.
Earnings season continues, with results from 46 S&P 500 companies due this week. Baidu’s efforts to ease concerns over AI rivalry saw its shares slip in pre-market trading. This report kicks off a crucial week for China’s tech industry, with Alibaba’s earnings expected on Thursday.
Tuesday will also see quarterly reports from companies such as Devon Energy and Toll Brothers, with Walmart and Dropbox announcing on Thursday. Key economic data releases include the Empire Manufacturing Index and the NAHB Housing Market Index for February. A Bank of America survey highlighted the increasing risk of a global trade war, now considered the biggest threat to markets by 42% of fund managers surveyed, up from 30% in January.
The escalating trade tensions have significant implications for stock valuations across sectors.