U.S. stock futures slipped early Tuesday after Monday’s strong gains. Investors are also gearing up for a key week of corporate earnings. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 Index (SPX) were down 0.18%, 0.11%, and 0.13%, respectively, at 4:49 a.m. EDT on October 21.
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On Monday, all three major indices closed higher, buoyed by a surge in Apple (AAPL) stock and renewed optimism that the U.S. government shutdown may soon end. Overall, the Dow Jones, the S&P 500, and the Nasdaq Composite rose 1.1%, 1.1%, and 1.4%, respectively.
Meanwhile, U.S.-China trade tensions remain in focus as President Trump threatens 100% tariffs on Chinese imports from November 1. However, his upbeat remarks about a possible deal with Beijing eased concerns. He said he expects to reach a fair agreement after meeting Chinese President Xi in South Korea later this month.
The Q3 earnings season is now in full swing, and investors are closely watching this week’s earnings slate, with Netflix (NFLX) and Coca-Cola (KO) reporting Tuesday, followed by Tesla (TSLA) on Wednesday. According to Bank of America, about 75% of S&P 500 companies have beaten estimates so far. Major tech firms continue to drive profits, with the “Magnificent 7” expected to post 14.9% earnings growth versus 6.7% for the rest of the index, according to FactSet.
On the economic front, traders are looking ahead to Friday’s consumer price index (CPI) data, which could offer insight into inflation trends and influence the Fed’s next move.
Meanwhile, the U.S. 10-year Treasury yield was slightly down, floating near 3.97%. WTI crude oil futures were trending lower, hovering near $60.98 per barrel as of the last check. Also, the Gold Spot U.S. Dollar Price fell to nearly $4,267.63 per ounce, as of writing.
Elsewhere, European stocks were flat on Tuesday as traders took a breather after Monday’s strong rally and assessed new corporate updates.
Asia-Pacific Markets Traded Higher Today
Asia-Pacific markets ended higher today after Japan’s parliament elected Sanae Takaichi as the country’s first female prime minister, boosting investor optimism and pushing Tokyo stocks to a record high. As a result, Japan’s Nikkei Index closed 0.27% higher at 49,316.06, and Topix closed higher by 0.03%.
Her new ruling coalition is expected to discuss higher defense spending, possible tax cuts, and restarting Japan’s suspended nuclear power plants.
Meanwhile, Hong Kong’s Hang Seng Index ended higher by 0.65%. In China, the Shanghai Composite gained 1.36% and the Shenzhen Component closed higher by 2.06%.
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