The S&P 500 gained 0.7% in Monday's session as tech shares outperformed after Anthropic filed to go public. Futures were little changed early Tuesday, with traders waiting for corporate earnings and the start of a two-day Fed meeting.
The S&P 500 gained 0.7% on Monday as Wall Street started the week on a solid note. The Dow climbed 146.42 points, or 0.3%, while the Nasdaq Composite advanced 0.8% as tech shares outperformed.
The artificial intelligence trade got a boost after Anthropic filed to go public at the Nasdaq. Tesla shares advanced more than 5%, and Nvidia climbed 2%.
Futures slip ahead of a busy Tuesday
S&P 500 futures were down 0.13% early Tuesday, while Dow Jones Industrial Average futures were broadly flat. Nasdaq-100 futures were down 0.42%.
However, the AI trade has faced pressure from investors worried that companies in the space are borrowing too much cash to fund their AI build-outs. Traders will now pore through a deluge of third-quarter earnings reports, with Coca-Cola, Robinhood and Boeing among the companies set to post results. Microsoft, Alphabet and Amazon are due out later in the week.
Fed meeting in focus
The Fed also starts its latest monetary policy meeting. The central bank is expected to keep rates unchanged. Traders will look for clues on whether another rate hike will take place before year-end.
Thomas Block, Washington policy strategist at Fundstrat, wrote that it will still be interesting to see the vote after the swings in the last two meetings if rates do not change. He also said it would be unlikely that the Fed would move rates a week before a national election.
Traders will also watch durable orders, consumer confidence data and the new home sales report.
Asia and Europe react
In Asia, Japan's Nikkei 225 closed 1.73% higher, while South Korea's Kospi gained 3.09%. Mainland China's CSI 300 closed 1.32% lower. In Europe, Stoxx 50 futures were seen 0.32% lower ahead of the open.
Source: CNBC
Trading involves risk.
Risk Disclaimer
