(Reuters) -Futures tracking the Nasdaq and the S&P 500 edged higher on Tuesday as investors geared up for earnings from major Wall Street lenders as well as inflation data that could sway expectations around how soon the Federal Reserve will cut interest rates.
At 5:32 a.m. ET, Dow E-minis were down 44 points, or 0.1%, and S&P 500 E-minis were up 22 points, or 0.35%.
Nasdaq 100 futures rose 0.59% to record highs, powered by an uptick in Nvidia after the chip designer announced plans to restart sales of its H20 AI chip to China. The company’s shares were up 5.2% in premarket trading.
The news also lifted other chipmakers, with Advanced Micro Devices rising 3.6%, Marvell Technology up 2.7% and U.S.-listed shares of TSM gaining 2.5%.
Meanwhile, the earnings season is about to kick off with banking giants JPMorgan Chase, Wells Fargo, and Citigroup set to report their quarterly results before the opening bell.
Major U.S. banks are expected to report stronger profits, driven by buoyant trading and a modest rebound in investment banking.
Despite President Donald Trump’s renewed tariff threats – this time aimed at Russia – markets largely brushed off the rhetoric, focusing instead on a breakthrough from negotiations with U.S. trade partners.
Hopes were buoyed after Trump signaled willingness to talk, following his weekend warning of 30% tariffs on the European Union and Mexico starting August 1.
On Monday, all three indexes closed higher, with the Nasdaq finishing at record-high.
All eyes are on the June consumer price report, due at 8:30 a.m. ET, as investors watch for any signs that tariffs are fueling inflation.
Economists surveyed by Reuters expect headline inflation accelerated to 2.7% last month on a year-over-year basis, up from 2.4% in May, while core inflation is forecast to tick up to 3% from 2.8%.
Elias Haddad, senior markets strategist at Brown Brothers Harriman, noted that the effect of tariffs on inflation has been muted, but stuck to the view that “higher U.S. levies is a downside risk to U.S. growth and upside risk to inflation.”
The odds of a July rate cut have faded, while markets are pricing in a roughly 60% chance of a move in September, according to CME FedWatch.
Later in the day, at least four Fed officials, including Board Governor Michael Barr, are scheduled to speak, potentially offering fresh clues on the central bank’s next steps.
Among other movers, Trade Desk surged 15.1% after the software firm was set to join the benchmark S&P 500 index.
(Reporting by Pranav Kashyap in Bengaluru; Editing by Maju Samuel)
