Tech Earnings Optimism May Lead To Continued Strength On Wall Street

The major U.S. index futures are currently pointing to a higher open on Tuesday, with stocks likely to see further upside following the strength seen in the previous session.

Tech stocks may help to lead an early advance on Wall Street, as reflected by the 0.6 percent increase by the tech-heavy Nasdaq 100 futures.

Traders remain optimistic ahead of the release of earnings news from big-name tech companies like Apple (AAPL), Meta Platforms (META) and Microsoft (MSFT).

Shares of Apple are jumping by 1.6 percent in pre-market trading after surging by 3.0 percent on Monday, while Meta and Microsoft may also see further upside after moving notably higher in the previous session.

Positive sentiment may also be generated in reaction to upbeat earnings news from big-name companies like General Motors (GM) and UPS (UPS).

On the other hand, a slump by shares of UnitedHealth (UNH) is likely to weigh on the Dow, with the health insurance giant plunging by 15.7 percent in pre-market trading.

The steep drop by UnitedHealth comes after the company reported slightly better than expected fourth quarter earnings but provided disappointing revenue guidance.

A Trump administration proposal calling for nearly flat rates for Medicare Advantage insurers is also likely to weigh on insurance stocks.

Following the mixed performance seen during last Friday’s session, stocks moved mostly higher during trading on Monday. With the upward move, the major averages further offset the steep drop seen last Tuesday.

The major averages moved to the downside going into the end of the day but remained in positive territory. The Dow advanced 313.69 points or 0.6 percent to 49,412.40, the Nasdaq rose 100.11 points or 0.4 percent to 23,601.36 and the S&P 500 climbed 34.62 points or 0.5 percent to 6,950.23.

The strength on Wall Street came amid strong gains by Apple, Meta Platforms and Microsoft, which moved higher ahead of the release of their quarterly results later this week.

Shares of Apple surged by 3.0 percent, shares of Meta jumped by 2.1 percent and shares of Microsoft advanced by 0.9 percent.

However, traders seemed reluctant to make more significant moves ahead of the Federal Reserve’s monetary policy announcement on Wednesday.

While the Fed is widely expected to leave interest rates unchanged, traders will pay close attention to the accompanying statement for clues about the outlook for rates.

Traders also kept an eye on the latest geopolitical developments, with President Donald Trump threatening to impose a 100 percent tariff on goods from Canada over a potential free trade deal with China.

Canadian Prime Minister Mark Carney responded by saying his country has no intention of pursuing such a deal.

The U.S. government is also facing the possibility of another shutdown, as several Democratic senators have threatened to oppose a spending bill if it includes appropriations for the Department of Homeland Security.

The impasse over DHS funding comes after federal immigration agents shot and killed another U.S. citizen in Minneapolis over the weekend.

In U.S. economic news, a report released by the Commerce Department showed new orders for U.S. manufactured durable goods surged by much more than expected in the month of November.

Networking stocks turned in some of the market’s best performances on the day, with the NYSE Arca Networking Index jumping by 2.0 percent.

Notable strength was also visible among software stocks, as reflected by the 1.1 percent gain posted by the Dow Jones U.S. Software Index.

On the other hand, steel stocks showed a significant move to the downside, dragging the NYSE Arca Steel index down by 2.2 percent.

Airline stocks also saw considerable weakness on the day, resulting in a 1.5 percent loss by the NYSE Arca Airline Index.

Commodity, Currency Markets

Crude oil futures are jumping $0.64 to $61.27 a barrel after sliding $0.44 to $60.63 a barrel on Monday. Meanwhile, after surging $102.80 to $5,082.50 an ounce in the previous session, gold futures are edging down $2.90 to $5,079.60 an ounce.

On the currency front, the U.S. dollar is trading at 153.21 yen compared to the 154.15 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1933 compared to yesterday’s $1.1879.

Asia

Asian stocks advanced on Tuesday after Wall Street’s strong overnight performance. Investors shrugged off geopolitical and U.S. government shutdown worries to focus on upcoming big tech earnings and the Federal Reserve’s interest rate decision.

Spot gold hit a new record high above $5,100 an ounce, while the U.S. dollar fell as investors reassessed President Trump’s policies, geopolitical risks and the outlook for European-held U.S. financial assets. Oil prices moved lower in Asian trading on oversupply concerns.

China’s Shanghai Composite Index edged up by 0.2 percent to 4,139.90 after data showed profits at Chinese industrial firms rose in 2025 for the first time in four years.

Hong Kong’s Hang Seng Index jumped 1.4 percent to 27,126.95, extending a rally for a fifth day running on signs of improved earnings momentum for Chinese industrial firms.

Japanese markets rose notably as the yen steadied after recent strong gains amid speculation the U.S. may coordinate intervention with Japan.

The Nikkei 225 Index advanced 0.9 percent to 53,333. 54 amid gains in heavyweight technology stocks. The broader Topix Index settled 0.3 percent higher at 3,563.59. Advantest surged 5.9 percent and Tokyo Electron rallied 2.5 percent

Seoul stocks soared to end at a new high despite U.S. President Trump’s threat to raise tariffs on Korean imports.

Trump said he was raising tariffs on South Korean goods to 25 percent from 15 percent over the country’s legislature failure to codify a trade agreement reached with the U.S. last year.

Seoul’s presidential office assured the U.S. it was committed to implementing the deal with Washington and would respond calmly to the tariff announcement.

The Kospi surged 2.7 percent to 5,084.85, with semiconductor stocks leading the rally. Samsung Electronics and SK Hynix jumped 4.9 percent and 8.7 percent, respectively to reach new record levels.

Australian markets hit a three-month in a broad-based rally led by mining and gold stocks. The benchmark S&P/ASX 200 Index jumped 0.9 percent to 8,941.60, while the broader All Ordinaries Index closed up 0.9 percent at 9,268.50.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index rose 0.4 percent to 13,510.88.

Europe

European stocks have moved mostly higher on Tuesday as investors ponder the long-term implications of U.S. tariff threats for the global trade order.

After threatening 100 percent tariffs on Canadian goods over a potential Canada-China deal, U.S. President Donald Trump has announced he is raising tariffs on South Korean imports to 25 percent because of a delay in the South Korean legislature approving a trade deal with the United States.

The Federal Reserve’s upcoming monetary policy meeting and big tech earnings also remain on investors’ radar.

The U.K.’s FTSE 100 Index is up by 0.6 percent and the French CAC 40 Index is up by 0.4 percent, although the German DAX Index is just below the unchanged line.

Puma has soared after China’s Anta Sports said it would buy a 29.06 percent stake in the German sportswear maker for €1.5 billion ($1.8 billion).

Swiss pharmaceutical firm Roche has also moved to the upside after its experimental obesity drug delivered positive results in a phase II clinical trial.

Meanwhile, Swedish medical equipment maker Getinge has slumped after its fourth-quarter core earnings came in below market expectations.

British bootmaker Dr. Martens has also plunged after it forecast broadly flat revenue for the whole of fiscal 2026, citing stronger currency headwinds.

U.S. Economic News

Standard & Poor’s is due to release its report on home prices in major metropolitan areas in the month of November at 9 am ET. The annual rate of home price growth is expected to dip to 1.2 percent in November from 1.3 percent in October.

At 10 am ET, the Conference Board is scheduled to release its report on consumer confidence in the month of January. The consumer confidence index is expected to rise to 90.0 in January after falling to 89.1 in December.

The Treasury Department is due to announce the results of this month’s auction of $70 billion worth of five-year notes at 1 pm ET.