U.S. stocks pointed higher early Tuesday as investors braced for a key inflation reading and the first wave of second-quarter earnings from major banks. Strong premarket gains in Nvidia also fueled optimism heading into the trading day.
S&P 500 futures edge up, led by Nvidia surge
- S&P 500 futures: +0.4%
- Nasdaq 100 futures: +0.6%
- Dow futures: -0.1%
Shares of Nvidia jumped 5% premarket after the chipmaker announced it will soon resume sales of its H20 AI chips to China following assurances from the U.S. government. The news reignited enthusiasm in the tech sector, lifting broader indexes ahead of the open.
Big banks kick off Q2 earnings season
Tuesday marks a critical day for earnings, with JPMorgan Chase, Wells Fargo, Citigroup, State Street, and BlackRock all set to report before the opening bell. Wall Street is hoping a strong showing from financials can sustain the market’s momentum.
According to FactSet, S&P 500 companies are expected to post just 4.3% earnings growth in Q2 compared to last year—the slowest pace since late 2023.
CPI report in focus as inflation looms
The June Consumer Price Index (CPI) is due Tuesday morning. Economists anticipate a:
- 0.3% monthly rise in headline CPI
- 2.7% year-over-year increase
- 3.0% annual rise in core CPI
A surprise to the upside could rattle markets, especially amid President Donald Trump’s recent announcement of 30% tariffs on goods from the European Union and Mexico starting August 1.
Global markets react to mixed sentiment
- Asia-Pacific: Most indices gained on the back of stronger-than-expected China Q2 GDP growth (+5.2%).
- Europe: Stocks opened higher, with the Stoxx 600 up 0.2% despite tariff headlines.
- Commodities:
- WTI crude: $66.47/barrel
- Gold: $3,357/oz
- 10-year Treasury yield: 4.42%
Market snapshot from Monday
Despite geopolitical concerns, U.S. stocks managed modest gains to start the week:
- Dow Jones: +88 points (+0.2%)
- S&P 500: +0.1%
- Nasdaq Composite: +0.3%
Market strategists say the rally may be due for a pause. “After a historic run, some breather is in order,” said Dan Greenhaus of Solus Alternative Asset Management on CNBC’s Closing Bell.
Stocks to watch today
- Nvidia (NVDA): +5% premarket after H20 chip announcement
- The Trade Desk (TTD): +14% after news of S&P 500 inclusion
- Albertsons (ACI): Reporting earnings alongside BlackRock
- Goldman Sachs & Tesla: Scheduled to report later this week
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