U.S. stock futures edged higher on Tuesday to start a holiday-shortened trading week. Investors are keeping a close eye on the Federal Reserve, with officials signaling a firm belief in a certain policy direction. The spotlight is on Wednesday’s release of Fed minutes for more clues to policymakers’ thinking.
Additionally, U.S.-Russia talks aimed at ending the Ukraine war are capturing market interest as President Donald Trump and Russian President Vladimir Putin’s teams meet in Saudi Arabia. European stock markets maintained near-record highs, buoyed by expectations of increased defense spending in the region. The earnings season continues, with results from 46 S&P 500 companies scheduled for this week.
Fed’s policy signals in focus
Baidu’s efforts to ease concerns over AI rivalry saw pre-market trading activity, though shares slipped. Key reports from China’s tech giants, including Alibaba, are due later in the week.
Tuesday’s key earnings reports include Devon Energy and Toll Brothers. Walmart and Dropbox are releasing their quarterly results on Thursday, marking a significant day for investors. Economic indicators to watch today include the Empire Manufacturing index for February and the NAHB housing market index, also for February.
With markets absorbing numerous factors, including trade tensions and policy shifts, investors are advised to stay vigilant. Bank of America’s latest fund manager survey indicates that a potential global trade war is currently seen as the biggest risk to markets.
