U.S. stock futures nudged upward early Tuesday as traders braced for a packed week filled with major earnings reports, pivotal economic data, and a closely watched interest rate decision from the Federal Reserve. At the same time, renewed trade discussions between the U.S. and China in Sweden stirred cautious optimism that a temporary truce might be extended.
In a sign of robust demand from China, Nvidia has reportedly placed a fresh order for 300,000 H20 AI chips with Taiwan Semiconductor Manufacturing Co (TSMC), underscoring the region’s surging appetite for artificial intelligence hardware.
Modest Gains in U.S. Futures
Futures contracts tied to major U.S. indexes signaled a slightly positive open. As of 03:35 ET, Dow Jones Industrial Average futures ticked up by 27 points (0.1%), S&P 500 futures added 8 points (0.1%), and Nasdaq 100 futures rose 62 points (0.3%).
The S&P 500 closed Monday at another all-time high, buoyed by momentum from the weekend’s U.S.-EU trade deal. That agreement is part of a series of deals the Biden administration aims to finalize ahead of August 1, when increased “reciprocal” tariffs are expected to take effect.
Commenting on the deal, analysts at Vital Knowledge noted that the 15% tariff imposed on EU imports was widely anticipated: “that’s exactly what [markets] got.”
Beyond trade developments, investors are keeping a close eye on earnings surprises and the looming Fed announcement, especially with key inflation figures still to come.
Among early movers, Nike shares rallied after JPMorgan Chase upgraded the stock from “neutral” to “overweight.”
U.S.-China Trade Talks Continue in Sweden
Negotiators from Washington and Beijing are meeting again in Stockholm to explore the possibility of extending a fragile tariff ceasefire. Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent were both seen attending discussions at the Swedish Prime Minister’s office, according to Reuters.
So far, no official statements have been made, but reports suggest that talks may pave the way for a 90-day extension of the current trade truce. U.S. Trade Representative Jamieson Greer downplayed expectations, noting that an “enormous breakthrough” was unlikely.
However, a potential extension could open the door to another summit between President Trump and Chinese leader Xi Jinping.
Earnings Season Ramps Up
This week marks a critical point in the corporate reporting calendar, with 164 S&P 500 companies set to deliver quarterly results.
Before Tuesday’s opening bell, earnings are expected from big names such as Merck, UnitedHealth Group, and Boeing. Procter & Gamble is also due to report, just a day after announcing the exit of CEO Jon Moeller.
Later in the day, Visa will take the spotlight. Analysts are watching closely to assess the health of U.S. consumers amid global tariff uncertainty, with Mastercard also in focus this week.
European companies also delivered notable results: AstraZeneca beat profit expectations, thanks in part to strong sales in oncology. Barclays exceeded income forecasts, helped by market volatility following Trump’s April tariff moves.
Meanwhile, Philips shares jumped after it raised its full-year margin outlook, having taken a smaller-than-expected tariff hit. On the other hand, Stellantis slipped after its new CEO flagged “challenges” despite forecasting stronger revenues in the latter half of the year.
Key U.S. Economic Data on Deck
Tuesday brings the latest JOLTS survey—a closely followed indicator of job openings and labor market health. Analysts forecast a slight dip to 7.51 million from the previous 7.77 million.
These labor metrics will set the tone ahead of more consequential releases, including the ADP payroll report and Friday’s July jobs numbers.
Also due is July’s consumer confidence index, which is expected to improve from June’s level.
In a note, analysts at ING said: “Ahead of tomorrow’s FOMC meeting, which could also prove dollar positive, today sees the release of US JOLTS job opening data and also July consumer confidence. The former is expected to show some stability (at around the 7500k mark) and the latter is expected to pick up in line with the strong stock market.”
The Federal Reserve kicks off its two-day meeting Tuesday, with markets broadly expecting no change to interest rates. Several Fed officials have hinted recently that maintaining current rates may be prudent until the economic effects of recent tariff moves become clearer.
Nvidia Boosts Chip Orders Amid Strong Chinese Demand
Nvidia has placed an order for 300,000 of its H20 AI chips with TSMC, Reuters reported, citing unnamed sources. This comes after the U.S. government reversed an earlier ban, allowing Nvidia to resume sales of the chips to Chinese firms.
The report stated the new order adds to an existing stockpile of 600,000 to 700,000 H20 chips. Around 1 million units were sold in 2024, according to estimates from SemiAnalysis.
While less powerful than Nvidia’s H100 or Blackwell chips, the H20 was developed specifically for the Chinese market. CEO Jensen Huang said during a recent appearance in Beijing that ramping up production could take as long as nine months.
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