US Futures Rise Awaiting Earnings Flood, Fed Meeting

U.S. stocks rose slightly ahead of the open on Tuesday as investors awaited a flood of major earnings from companies such as Microsoft and the start of the Federal Reserve’s monetary policy meeting.

Futures for the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) rose about 0.2%, following a lackluster session for the major indexes. Futures for the Dow Jones Industrial Average (YM=F) hovered above the flat line.

Stock markets are in for a potentially decisive week, with a Federal Reserve decision, July’s jobs report and earnings from four of the seven major companies. All of this will be crucial for investors wondering whether the recent stock market rout is over, as they balance high expectations for interest rate cuts with concerns that Big Tech has lost its mojo.

All eyes are now on Microsoft’s quarterly report due after the close of trading, which will set the stage for Apple (AAPL), Amazon (AMZN), and Meta (META) results in the days to come.

Wall Street is watching closely for any signs that the massive investment in artificial intelligence is starting to pay off. This is especially in focus after a volatile July for stocks highlighted the risks of AI trading, as investors moved away from big tech companies and toward smaller-cap companies.

Tuesday’s crowded earnings lineup also included Starbucks (SBUX), Merck (MRK), Pfizer (PFE), Procter & Gamble (PG), and more. A prominent theme this earnings season has been investors’ willingness to back companies that are posting weak results but are showing signs of a turnaround soon.

In early trading, shares of Diego Inc. (DEO) fell after whisky maker Johnnie Walker missed annual earnings forecasts as it warned that falling consumer confidence could extend into next year.

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Meanwhile, the Federal Reserve begins its July policy meeting later on Tuesday, and is expected to leave borrowing costs unchanged on Wednesday but is expected to lay the groundwork for a rate cut in September. After encouraging inflation data in June, market debate is now focused on the timing and number of cuts this year.