Stock futures were little changed early Tuesday as traders awaited a wave of corporate earnings reports and the start of a Federal Reserve policy meeting. Wall Street had closed higher on Monday, with tech stocks getting a boost from the news of AI firm Anthropic filing for an IPO.
Key earnings expected today include Coca-Cola, Robinhood, and Boeing, while the Fed’s decision on interest rates will also be closely watched for clues on future policy moves. Global markets showed a mixed performance, with Asian stocks mostly higher but China’s CSI 300 declining.
Stock futures showed little movement early Tuesday, following a positive start to the week on Wall Street. Traders are now focused on a busy schedule of corporate earnings reports and the commencement of a two-day Federal Reserve policy meeting.
S&P 500 futures dipped 0.13%, Dow Jones Industrial Average futures were largely flat, and Nasdaq-100 futures declined by 0.42%.
In Asian markets, Japan's Nikkei 225 closed up 1.73%, while the Topix gained 0.61%. South Korea's Kospi rose 3.09%, and the Kosdaq advanced 2.29%. Australia's S&P/ASX 200 edged up 0.46%. Mainland China's CSI 300, however, fell 1.32%.
The previous day saw Wall Street finish on a strong note. The Dow Jones Industrial Average climbed 146.42 points (0.3%), the S&P 500 gained 0.7%, and the Nasdaq Composite advanced 0.8%. The surge in tech stocks was partly fueled by news that AI company Anthropic had filed for an IPO on the Nasdaq, signaling another major tech offering for 2026, following SpaceX's successful debut.
Notable stock movements included Tesla shares rising over 5% and Nvidia climbing 2%. Microsoft and Amazon also saw gains.
Despite the recent upward trend, the artificial intelligence sector has faced some investor concerns regarding the amount of debt companies are taking on to fund AI infrastructure development.
Tuesday's corporate calendar is packed with third-quarter earnings reports, including those from Coca-Cola, Robinhood, and Boeing. Tech giants Microsoft, Alphabet, and Amazon are slated to release their results later in the week.
The Federal Reserve's monetary policy meeting is also a key event. While no change in interest rates is anticipated, investors will be scrutinizing the Fed's statements for any hints about potential future rate hikes before the end of the year.
Thomas Block, Washington policy strategist at Fundstrat, commented, "If, as expected, there is no change in rates, it will still be interesting to see what the vote is after the swings in the last two meetings. While the Fed views itself above partisan politics, it would be unlikely that the Fed would move rates a week before a national election."
Economic data releases on Tuesday include durable goods orders, consumer confidence figures, and new home sales reports.
In other market news:
- Novartis raised its profit outlook, expecting core operating income to grow in the low single digits for 2026, a positive shift from previous expectations of a small decline. The Swiss drugmaker reported third-quarter sales largely in line with expectations, despite a $1.9 billion hit from a partial impairment of its del-desiran drug. CEO Vas Narasimhan emphasized the need to remain "courageous" in pursuing breakthroughs.
- Porsche reported a significant jump in profit for the first nine months of the year, driven by restructuring efforts. However, the luxury carmaker faces challenges in the Chinese market due to increased competition and weaker demand. The company plans workforce reductions as part of its cash-saving strategy.
- Oil prices were mixed in early trade, with Brent crude futures hovering just above the flatline and West Texas Intermediate futures seeing a slight decline. Talks between Saudi Arabia, Turkey, Pakistan, and Iranian officials aimed at maintaining diplomatic channels preceded the mixed trading.
- European stock markets were poised to open lower, with futures indicating declines for the Stoxx 50, CAC 40, DAX, and FTSE MIB.
- HSBC announced a share buyback program of up to $1 billion as its third-quarter pretax profit met analyst expectations. Revenue increased year-on-year, driven by higher net interest income and fee income.
- China's industrial profits saw their strongest growth in three months, rising 14.4% in September, boosted by AI-related manufacturing demand.
- The Korea Exchange activated a buy-side sidecar on the Kospi as the index surged.
- Asian tech stocks followed their U.S. counterparts upward, buoyed by optimism over the Anthropic IPO filing. SK Hynix shares gained amid reports of significant dividend plans.
- JetBlue Airways shares surged after the company projected further margin expansion, while Whirlpool dropped after lowering its full-year revenue guidance and missing earnings expectations.
