U.S. stock index futures were little changed early Tuesday, suggesting a flat open on Wall Street as investors appear ready to take a breather after the market’s strong two-session rebound.
The major indexes have climbed back to within striking distance of their all-time highs, supported by upbeat earnings and optimism around monetary policy. However, uncertainty tied to U.S.–China trade tensions and the prolonged government shutdown is keeping traders cautious.
The absence of fresh U.S. economic data, largely due to the shutdown, may also contribute to the quiet tone ahead of Friday’s release of key inflation figures. That data will be closely watched for signals about the path of interest rates before the Federal Reserve’s policy meeting next week.
According to CME Group’s FedWatch Tool, markets are pricing in a 97.8% chance of a quarter-point rate cut next week and a 95.5% probability of another cut in December.
On the corporate front, General Motors (NYSE:GM) surged in premarket trading after reporting stronger-than-expected third-quarter results and raising its full-year profit guidance. Coca-Cola (NYSE:KO) also gained after delivering a beat on both revenue and earnings. In contrast, Northrop Grumman Corporation (NYSE:NOC) may come under pressure despite topping earnings estimates, as its quarterly revenue fell short of forecasts.
The upbeat sentiment follows Monday’s strong session, when the S&P 500 climbed 71.12 points, or 1.1%, to 6,735.13; the Dow Jones Industrial Average jumped 515.97 points, or 1.1%, to 46,706.58; and the Nasdaq Composite surged 310.57 points, or 1.4%, to 22,990.53.
Apple (NASDAQ:AAPL) was a standout mover, climbing 3.9% to a new record close after Loop Capital upgraded the stock to “Buy” on strong demand for the iPhone 17 series.
Market optimism was also lifted by remarks from National Economic Council Director Kevin Hassett, who said he expects the government shutdown to end this week. Speaking on CNBC’s “Squawk Box,” Hassett noted he anticipates moderate Democrats will “cross the aisle” to help pass a funding bill.
Meanwhile, The Wall Street Journal reported that President Donald Trump’s administration is quietly easing tariff rules by granting exemptions on dozens of products and signaling more carve-outs during trade negotiations.
Sector-wise, steel stocks outperformed, with the NYSE Arca Steel Index rallying 3.5%. Cleveland-Cliffs (NYSE:CLF) soared 21.5% after revealing plans to explore entering the rare earth mining sector.
Gold miners also posted strong gains as bullion prices rebounded, driving the NYSE Arca Gold BUGS Index up 3%. Airline, banking, oil services, and semiconductor shares also advanced, contributing to broad-based strength across the market.
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