U.S. stock index futures hovered near the flatline on Tuesday as investors looked ahead to major tech earnings and a Federal Reserve meeting. The S&P 500 gained 0.7% on Monday, helped by a tech recovery after Anthropic's IPO filing.
S&P 500 futures edged up 5 points, or 0.1% by 05:55 ET on Tuesday, in choppy trading. Nasdaq 100 futures gained 35 points, or 0.1%, while Dow futures rose 85 points, or 0.2%.
Tech rebound fades as debt concerns linger
On Monday, the S&P 500 rose 0.7%, the NASDAQ Composite added 0.8% and the Dow Jones Industrial Average rose 0.28%, aided chiefly by a recovery in tech stocks.
However, the recovery was seen losing steam going into Tuesday's session, as concerns over stretched debt levels and spending in the sector remained in play.
Anthropic filed for an initial public offering on Monday. The filing showed a first-half 2026 net loss of about $80.7 billion, up fivefold, against revenue of about $16.3 billion. The startup plans to trade under the ticker ANT and is reportedly being valued at around $1.5 trillion, down from earlier projections of $2 trillion.
Megacap earnings test the AI trade
Questions over whether debt-fueled AI spending can yield adequate returns had battered AI and tech valuations over the past two weeks, according to Investing.com. This week's megacap earnings are expected to provide more cues.
Alphabet and Microsoft report September quarter earnings on Wednesday, followed by Amazon on Thursday. Meta is in focus on Tuesday after NVIDIA said it will invest $3 billion in the company's share offering.
Fed expected to hold after September hike
The Fed starts a two-day meeting on Tuesday and is broadly expected to leave rates unchanged on Wednesday. The central bank is expected to wait and see the effects of a 25 basis point hike in September, its first such move since 2023, which brought rates to 4.0%.
Fed Chair Kevin Warsh's comments will be closely scrutinized. He struck a hawkish chord in September, warning that sticky inflation was likely to invite more hikes. Third-quarter GDP and PCE price index data, the Fed's preferred inflation gauge, are both due on Thursday.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
