U.S. stock futures traded without much direction on Tuesday as a packed week of earnings reports, major central bank meetings, and high-stakes trade negotiations gained momentum. President Donald Trump is in Japan on the latest stop of his Asia tour, with hopes rising that the visit will pave the way for a trade agreement with China after his summit with Xi Jinping in South Korea on Thursday.
Meanwhile, attention turns to UnitedHealth Group Incorporated (NYSE:UNH) ahead of its quarterly earnings release, and reports indicate Amazon.com, Inc. (NASDAQ:AMZN) is preparing a sweeping round of job cuts. Gold prices continue to decline after slipping below the $4,000 level.
Futures drift lower
U.S. equity futures hovered around the flatline early Tuesday, as investors awaited both corporate earnings and developments on the U.S.–China trade front.
By 03:50 ET, Dow Jones Industrial Average and Nasdaq 100 futures were unchanged, while S&P 500 futures were down 4 points, or 0.1%.
On Monday, Wall Street’s major indexes closed at fresh record highs for a second straight session, with sentiment lifted by optimism that the upcoming Trump–Xi meeting could help cool tariff tensions. Markets also reacted positively to expectations that an agreement might avert triple-digit U.S. import tariffs and ease Chinese export restrictions on rare earths, pushing the CBOE Volatility Index (VIX) to a one-month low.
Shares of Qualcomm Incorporated (NASDAQ:QCOM) jumped 11% after the company announced plans to launch two AI chips for data centers starting next year.
Trump in Japan ahead of China summit
Before his meeting with Xi, Trump has embarked on a rapid multi-country tour across Asia. On Tuesday, he visited Japan, where he met the nation’s new Prime Minister Sanae Takaichi, a protégé of former leader Shinzo Abe.
Trump and Takaichi signed a framework agreement aimed at securing rare earth supplies, a step intended to reduce dependence on China for critical minerals used in industries like EVs and semiconductors. Neither leader explicitly mentioned China, the world’s dominant rare earth supplier.
Japan also reiterated its intention to invest $550 billion in the U.S., as part of a larger trade package announced earlier this year. According to Reuters, the agreement includes investments in shipbuilding and commitments to purchase U.S. soybeans, gas, and pickup trucks.
UnitedHealth to report
Earnings season picks up speed this week, with UnitedHealth Group Incorporated set to report before the opening bell. Analysts are closely watching newly installed CEO Stephen Hemsley’s strategy to turn the company around.
UnitedHealth, like other major healthcare players, faces rising medical costs driven by increased reimbursement rates for specialist follow-up visits. The company has also faced mounting regulatory scrutiny over its prior authorization policies, which came under the spotlight following the murder of one of its top executives last year.
Later in the day, results are expected from Visa Inc. (NYSE:V) and Booking Holdings Inc. (NASDAQ:BKNG). Later this week, earnings from Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META), and Amazon.com, Inc. will also be in focus.
Amazon plans deep job cuts
According to Reuters, Amazon is preparing to eliminate as many as 30,000 corporate jobs starting Tuesday as part of an effort to reduce costs and adjust to post-pandemic hiring levels. The cuts represent nearly 10% of its corporate workforce and would be the company’s largest layoff since 2022, when 27,000 positions were cut.
The layoffs are expected to impact divisions such as podcasting, communications, devices, and potentially Amazon Web Services. CEO Andy Jassy has previously warned that further reductions could come as AI technologies reshape operations.
Gold falls further ahead of Fed
Gold prices extended losses after Monday’s slide below $4,000 an ounce, as easing U.S.–China trade tensions reduced the metal’s appeal as a safe haven. Spot gold fell 1.6% to $3,915.67 per ounce, while U.S. gold futures declined 2.3% to $3,928.26.
The metal fell more than 3% on Monday to a two-week low and is now down about 10% from its record high of $4,381.29 reached just last week.
“Even after [Monday’s] correction, gold is still up more than 50% this year, underpinned by strong ETF demand and central bank buying amid diversification,” ING Group analysts said. “The recent price pullback could even be seen by some central banks as a chance to increase their holdings,” they added.
Markets are now focused on the Fed’s two-day policy meeting, which is expected to conclude Wednesday with a 25 basis-point rate cut. While lower rates typically support gold by reducing real yields, much of the move appears already priced in, limiting near-term upside.
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