U.S. stock futures advanced on Tuesday, led by a rebound in technology shares, as investors positioned ahead of Nvidia’s earnings report and fresh inflation data. The Dow Jones Industrial Average rose 160.24 points, or 0.30%, to 53,577.40, while the S&P 500 gained 24.38 points, or 0.32%, to 7,677.24. The Nasdaq Composite climbed 171.11 points, or 0.66%, to 26,151.30, recovering from a 2.7% drop in the prior session.
Market breadth favored advancers, with the NYSE recording a 1.71-to-1 ratio of advancing to declining issues, alongside 190 new 52-week highs and 79 new lows. On the Nasdaq, 3,059 stocks rose against 1,740 decliners, with the composite adding 105 new highs and 85 new lows. Trading volume totaled 14.32 billion shares, below the 20-day average of 16.4 billion.
Technology shares led gains, with Nvidia up 2.2% ahead of its earnings release scheduled for Wednesday. Meta advanced nearly 2%, Micron climbed 2.5%, and Advanced Micro Devices surged 4.9% following an upgrade from Raymond James. Biotechnology firm Moderna jumped 14% after Barclays raised its price target, citing late-stage trial results for a skin cancer vaccine developed with Merck.
Retailers lagged, with Dick’s Sporting Goods plunging 30.7% after cutting its full-year guidance. Nike and Target also declined 3.8% following criticism over a Halloween costume perceived as evoking blackface.
Oil prices fell to a one-week low, pulling longer-dated Treasury yields lower. Treasury Secretary Scott Bessent’s decision to expand Treasury buybacks further weighed on yields. Consumer confidence dropped in August to its lowest level in seven months, according to a survey.
Money market pricing suggests a 25-basis-point rate hike remains possible by year-end, following an inflation reading that tempered expectations for an imminent Federal Reserve move. Investors also await Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday for further policy signals.
Joe Quinlan, head of market strategy at Merrill and Bank of America Private Bank, noted mixed signals from bonds, geopolitics, and oil but remained constructive on the U.S. economic outlook for the next 12 to 18 months. Mark Malek, CIO at Siebert Financial, highlighted the challenge of execution in a market dominated by a single trade theme.
