U.S. equity futures were modestly higher on Tuesday evening after a softer regular session, with traders positioning ahead of a busy earnings calendar for the largest technology companies and a closely watched Federal Reserve policy meeting.
By 20:24 ET (00:24 GMT), S&P 500 futures were up 0.2% at 7,185.75 points, Nasdaq 100 futures were higher by 0.4% at 27,278.0 points, and Dow Jones futures had gained 0.2% to 49,407.0 points.
In the cash market earlier on Tuesday, major indexes slipped from recent highs. The S&P 500 fell 0.5% and the Nasdaq Composite dropped 0.9%, while the Dow Jones Industrial Average eased 0.1% as technology stocks weighed on the market.
Market participants attributed part of the pullback to renewed concerns about demand related to artificial intelligence. A report that OpenAI missed internal revenue and user targets prompted investors to re-evaluate the sustainability of heavy AI-driven spending on data centers and related infrastructure. Losses were concentrated among semiconductor and AI-linked names, with shares of Nvidia, Advanced Micro Devices and Broadcom among those that experienced declines.
Oil prices also contributed to the risk-off tone, remaining elevated after a sharp intraday rise. Traders cited ongoing disruptions in the Strait of Hormuz as a factor keeping crude prices firm. President Donald Trump commented on the situation, saying Iran had informed the U.S. that they were in a "state of collapse." He added on social media: "They want us to 'Open the Hormuz Strait,' as soon as possible, as they try to figure out their leadership situation (Which I believe they will be able to do!)."
Investor attention now turns to quarterly results from some of the largest market-capitalization companies. Microsoft, Meta Platforms, Amazon and Alphabet are scheduled to report on Wednesday after the closing bell, with Apple set to report later in the week. These firms make up a substantial portion of U.S. equity market value, and their reports will be parsed for evidence that their AI-related capital expenditures and revenue trajectories justify recent investment themes.
At the same time, the Federal Reserve convened a two-day policy meeting beginning Tuesday. The central bank is widely expected to hold interest rates steady, but market participants will be attentive to Chair Jerome Powell's commentary for any signals about the medium-term outlook for inflation and growth. Such guidance will be evaluated in the context of elevated oil prices and geopolitical developments that could influence inflationary pressures.
With earnings from several megacap technology companies imminent and the Fed set to issue its assessment, investors are balancing corporate-specific risks against macroeconomic developments. The coming 48 hours are likely to set the tone for near-term equity market direction as traders digest both company reports and central bank communication.
What to watch next
- Earnings from Microsoft, Meta, Amazon and Alphabet due Wednesday after the close; Apple later in the week.
- Federal Reserve commentary at the conclusion of its two-day meeting; rates are widely expected to be left unchanged.
- Oil price movements tied to disruptions in the Strait of Hormuz and related geopolitical statements.