Futures linked to major Wall Street averages inch up amid a deluge of crucial earnings releases, economic data and a key Federal Reserve interest rate decision this week. Meanwhile, officials from the U.S. and China meet in Sweden for renewed tariff talks, with media reports suggesting that the two could extend a recent trade truce. Nvidia has reportedly placed fresh orders for 300,000 of its H20 AI chips with contract manufacturer Taiwan Semiconductor Manufacturing Co as demand surges in China.
1. Futures rise
U.S. stock futures pointed higher on Tuesday, as investors assessed fresh talks between the U.S. and China and geared up for a raft of corporate earnings and economic data this week.
By 03:35 ET (07:35 GMT), the Dow futures contract had risen by 27 points, or 0.1%, S&P 500 futures climbed by 8 points, or 0.1%, and Nasdaq 100 futures were up by 62 points, or 0.3%.
On Monday, the benchmark S&P 500 notched a fresh record high, while the tech-heavy Nasdaq Composite also rose, following the weekend announcement of a trade agreement between the U.S. and European Union. The deal was the latest in a flurry of pacts the White House has raced to secure before August 1, when heightened "reciprocal" tariffs on a host of countries are due to come into effect.
Analysts at Vital Knowledge said in a note that the 15% across-the-board tariff rate set on EU goods imported into the U.S. had been widely expected and "that’s exactly what [markets] got."
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Beyond trade, investors were keeping tabs on early signs that the quarterly earnings season may be stronger than initially anticipated, along with an upcoming Federal Reserve interest rate decision later this week. Key economic indicators, including the Fed’s preferred gauge of inflation, are also scheduled to be released in the coming days.
In individual stocks, Nike (NYSE:NKE) shares jumped after analysts at JPMorgan Chase (NYSE:JPM) raised their rating of the stock to "overweight" from "neutral."
2. U.S.-China talks
The U.S. and China are expected to continue their latest round of trade talks in Sweden on Tuesday, with Beijing facing an August 12 deadline to reach a longer-lasting tariff agreement with Washington.
Officials from both countries, including Treasury Secretary Scott Bessent, were part of the negotiating teams present at the meetings in the Swedish Prime Minister’s office in Stockholm. Chinese Vice Premier He Lifeng was seen at the venue as well, Reuters reported, citing video footage.
None of the officials were seen leaving the site on Monday evening, but did not stop to speak with reporters.
Both sides had previously agreed on preliminary trade pacts earlier this year which cooled an intensifying trade war marked by rapidly escalating tit-for-tat tariffs and the squeezing-off of crucial rare earth minerals exports.
Although U.S. Trade Representative Jamieson Greer suggested that an "enormous breakthrough" was not imminent, media reports have hinted at the chance of a 90-day extension to the trade truce -- possibly opening a path for a future meeting betwen Trump and Chinese counterpart Xi Jinping.
