S&P, Nasdaq futures edge up amid earnings, UnitedHealth pressures Dow
At 06:50 a.m. ET, S&P 500 E-minis were up 17.75 points, or 0.28%, and Nasdaq 100 E-minis were up 110.75 points, or 0.47%.
Dow E-minis rose 0.04%, but the gains were capped as healthcare conglomerate UnitedHealth (UNH.N), opens new tab dropped 4.7% in premarket trading following a disappointing profit forecast.
Meanwhile, out of 168 S&P 500 companies that have reported, nearly 80% have beaten earnings expectations, according to Friday's LSEG data. But caution lingers, as some of Wall Street's giants feel the sting of U.S. President Donald Trump's sweeping tariffs.
United Parcel Service (UPS.N), opens new tab became the latest victim of the tariffs, falling 4% after the delivery company reported lower-than-expected second-quarter profit.
On Monday, the S&P 500 and the Nasdaq scored fresh record closes amid volatile trading, buoyed by a U.S.-EU trade deal that halved tariffs to 15% and stoked hopes of further global agreements ahead of Trump's looming August 1 deadline.
The President has also floated a potential "world tariff" of 15-20% for non-negotiating countries.
U.S. and Chinese officials on Tuesday kicked off a second day of high-stakes talks in Stockholm, aiming to cool tensions and avert a deepening trade war between the world's two largest economies. Negotiators are eyeing a possible 90-day extension to the fragile tariff truce brokered in May.
Earnings from tech heavyweights Meta (META.O), opens new tab, Microsoft (MSFT.O), opens new tab, Amazon (AMZN.O), opens new tab and Apple (AAPL.O), opens new tab are scheduled for later this week, which could test Wall Street's record run.
"The easiest gains (on Wall St) have now happened, and any further rise is likely to happen much more slowly," said Thomas Mathews, head of Markets at Capital Economics.
"The narrowness of the rally means it may depend especially heavily on "big tech" profit results continuing to paint a positive picture."
Spotify (SPOT.N), opens new tab tumbled 6.5% after the company forecast third-quarter profit below estimates.
The U.S. central bank is set to begin its two-day policy meeting later in the day. While the Fed is expected to leave rates unchanged on Wednesday, traders will closely analyze policymakers' remarks to gauge the timing of future moves.
According to the CME FedWatch tool, markets are pricing in a 61.7% chance of a rate cut in September.
The meetings come amid the White House's campaign on the central bank to lower borrowing costs, including Trump's persistent criticism of Fed Chair Jerome Powell and occasional suggestions to remove him from his position.
Investors are now focused on the latest Job Openings and Labor Turnover Survey (JOLTS) and consumer confidence reports for more clues on the U.S. economy, which continues to show signs of labor market strength—even as some inflationary pressures from tariffs begin to surface.
Analysts urge patience, as they await more data before sounding any alarms.
Among other earnings-related moves, Cadence Design (CDNS.O), opens new tab jumped 7.7% in premarket trading after the chip design software provider raised its annual sales and profit forecast.
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