U.S. stock futures are signaling a positive start on Tuesday, as investors build on the recent upward momentum that has driven major indexes to record highs. After a mixed but steady session on Monday, markets appear ready to move higher again.
Gains in the Nasdaq and S&P 500 have reflected continued strength in the tech sector and confidence in corporate earnings. The focus now shifts to ongoing trade negotiations and central bank policy updates.
In Stockholm, U.S.-China trade talks are underway, ahead of a looming Friday deadline that could see reciprocal tariffs reinstated. The outcome of these discussions could prove pivotal for market sentiment.
President Donald Trump made his position clear on Monday, stating that “most trading partners that do not negotiate separate trade deals would soon face tariffs of 15 percent to 20 percent on their exports to the United States.”
While optimism around trade has helped lift markets, caution remains ahead of Wednesday’s Federal Reserve announcement. The central bank is widely expected to keep rates unchanged, but investors will be watching closely for guidance on the policy outlook.
Attention is also turning toward the U.S. Labor Department’s monthly jobs report, as well as earnings updates from tech giants like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Meta Platforms (NASDAQ:META).
Monday’s session saw early gains fade slightly, though the Nasdaq and S&P 500 still closed at new highs. The Nasdaq rose by 70.27 points, or 0.3%, ending the day at 21,178.58. The S&P 500 added 1.13 points to finish at 6,389.77. The Dow Jones Industrial Average slipped by 64.36 points, or 0.1%, to close at 44,837.56.
A late-session boost came from reports of a newly finalized trade deal between the U.S. and European Union, coupled with speculation that the tariff truce with China could be extended for another 90 days.
Under the U.S.-EU agreement, a 15% tariff will apply to European goods—significantly lower than the 30% previously floated. In exchange, the EU committed to buying $750 billion worth of U.S. energy and investing an additional $600 billion into the American economy.
The energy sector led Monday’s winners, as crude oil prices surged on the back of the transatlantic deal. The NYSE Arca Oil Index gained 2.1%, while the Philadelphia Oil Service Index rose 1.8%.
Semiconductor stocks also performed well, with the Philadelphia Semiconductor Index advancing 1.6%. Hardware makers saw strength too, while gold miners, steel producers, and real estate stocks were under pressure.
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