The S&P 500 gained 0.7% on Monday as tech shares outperformed, but stock futures were little changed early Tuesday. Traders now look to a slew of corporate earnings and the start of a two-day Federal Reserve policy meeting.
The S&P 500 gained 0.7% as Wall Street started the week on a winning note, with the Nasdaq Composite advancing 0.8% as tech shares outperformed. The Dow climbed 146.42 points, or 0.3%.
The artificial intelligence trade got a boost after Anthropic filed to go public at the Nasdaq. Tesla shares advanced more than 5%, while Nvidia climbed 2%.
S&P 500 futures were down 0.1% early Tuesday, while Dow Jones Industrial Average futures were up 0.11% and Nasdaq-100 futures were down 0.25%.
Earnings and the Fed take over
Traders will pore through a deluge of third-quarter earnings reports on Tuesday. Coca-Cola, Robinhood and Boeing are among the companies set to post results, while Microsoft, Alphabet and Amazon are due out later in the week.
The Fed is also set to begin its latest policy meeting. The central bank is expected to keep rates unchanged, but traders will look for clues on whether another rate hike will take place before year-end.
Fundstrat's Thomas Block wrote that it would be unlikely the Fed would move rates "a week before a national election."
AI trade faces pressure over borrowing
The AI trade has faced pressure from investors worried that companies in the space are borrowing too much cash to fund their AI build-outs.
On the economic front, traders will watch for durable orders, consumer confidence data and the new home sales report.
Source: CNBC
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