U.S. Stocks May Extend Yesterday’s Rebound In Early Trading

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

Renewed optimism about the artificial intelligence trade may contribute to continued strength on Wall Street after AI giant Anthropic publicly filed for an initial public offering.

Potentially adding to the positive mood around AI, Nvidia (NVDA) and Meta (META) have announced they will partner to expand their work on Muse and the Muse family of models.

Under the partnership, Nvidia said it would invest $3 billion in Meta as part of the Facebook parent’s plans to raise up to $95 billion through equity financing.

Concerns about debt-fueled AI infrastructure spending weighed heavily on the markets late last week, although traders have recently shown a propensity to quickly shrug off the worries.

A positive reaction to some of the latest earnings news may also generate early buying interest, with shares of JetBlue (JBLU) soaring by 13.9 percent in pre-market trading.

The spike by JetBlue comes after the company reported a wider than expected third quarter loss but said it expects further margin expansion in the fourth quarter.

Shares of Corning (GLW) are also seeing significant pre-market strength after the glassmaker reported third quarter results that exceeded analyst estimates on both the top and bottom lines.

On the other hand, shares of Whirlpool (WHR) are plunging by 7.2 percent in pre-market trading after the appliance maker reporter disappointing third quarter results and lowered its full-year revenue guidance.

Overall trading activity may be somewhat subdued, however, as traders look ahead to the Federal Reserve’s monetary policy announcement on Wednesday.

While the Fed is widely expected to leave interest rates unchanged, traders are likely to closely analyze the accompanying statement for clues about the outlook for rates.

Following the pullback seen over the last two sessions of the previous week, stocks moved back to the upside during trading on Monday. The major averages all moved higher on the day, although the Dow posted a relatively modest gain.

The major averages finished the day off their highs of the session but still in positive territory. The Nasdaq advanced 214.04 points or 0.8 percent to 26,169.38, the S&P 500 climbed 53.09 points or 0.7 percent to 7,676.77 and the Dow rose 146.32 points or 0.3 percent to 52,361.58.

The rebound on Wall Street may partly have reflected bargain hunting, as some traders looked to pick up stocks at relatively reduced levels.

After plunging last Thursday, the Nasdaq saw further downside last Friday, ending the day at its lowest closing level since early August. The S&P 500 also fell to a one-month closing low.

Buying interest has also been generated in reaction to a significant pullback by the price of crude oil, with U.S. crude oil futures tumbling by 1.5 percent.

The pullback by crude oil prices came amid news Saudi Defense Minister Prince Khalid bin Salman has travelled to Tehran to meet with senior Iranian officials and discuss efforts to de-escalate the conflict in the Middle East.

A positive reaction to news artificial intelligence company Anthropic has publicly filed for an initial public offering also contributed to the strength on Wall Street.

Meanwhile, traders were also looking ahead to the Federal Reserve’s monetary policy announcement on Wednesday, with the central bank widely expected to leave rates unchanged.

Networking stocks moved sharply higher over the course of the session, with the NYSE Arca Networking Index spiking by 2.9 percent.

Substantial strength was also visible among semiconductor stocks, as reflected by the 2.8 percent surge by the Philadelphia Semiconductor Index.

Computer hardware, software and oil service stocks also saw notable strength, while brokerage stocks showed a significant move to the downside.

Commodity, Currency Markets

Crude oil futures are slumping $1 to $100.76 a barrel after tumbling $1.51 to $101.76 a barrel on Monday. Meanwhile, after climbing $30.50 to $4,038.40 an ounce in the previous session, gold futures are inching up $0.20 to $4,038.60 an ounce.

On the currency front, the U.S. dollar is trading at 157.78 yen compared to the 157.50 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1151 compared to yesterday’s $1.1172.

Asia

Asian stocks turned in a mixed performance on Tuesday as investors awaited earnings from major U.S. technology companies and the outcome of a slew of central bank meetings this week for direction.

Alphabet and Microsoft are scheduled to report their earnings results on Wednesday, followed by Amazon and Intel on Thursday.

The U.S. Federal Reserve’s monetary policy announcement is due on Wednesday, with the central bank widely expected to leave rates unchanged.

Gold held near $4,000 an ounce in Asian trading as the U.S. dollar strengthened ahead of the Fed decision.

Brent crude futures edged up slightly to hold above $116 a barrel in choppy trade after falling in the previous session amid renewed diplomatic efforts to prevent a wider escalation of the U.S.-Iran conflict.

Mainland Chinese and Hong Kong markets ended lower on worries about AI demand and curbs on Chinese exports.

While China’s Shanghai Composite Index slumped 1.3 percent to 3,648.30, Hong Kong’s Hang Seng Index dropped 0.7 percent to 23,041.32.

Japanese markets rose sharply as Anthropic’s IPO filing along with an announcement by Meta Platforms to raise up to $95 billion in its largest-ever equity fundraising revived investor appetite for artificial intelligence stocks.

The Nikkei 225 Index jumped 1.7 percent to 63,268.37, while the broader Topix Index closed 0.6 percent higher at 3,997.37. Advantest soared 9 percent, Tokyo Electron rallied 3.1 percent and SoftBank Group surged 5 percent.

Seoul stocks rallied after the release of strong GDP data for the third quarter. The Kospi Index surged 3.1 percent to 5,638.34, with chipmakers leading the charge before a host of major tech earnings.

Market bellwether Samsung Electronics climbed 4.2 percent and its chip rival SK Hynix added 5.2 percent.

Australian markets rose for a third consecutive session as higher copper prices boosted mining stocks. The benchmark S&P/ASX 200 Index climbed 0.5 percent to 8,850.10 ahead of Wednesday’s inflation data and next week’s RBA rate decision. The broader All Ordinaries Index settled 0.5 percent higher at 8,968.80.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index dipped 0.4 percent to 13,680.27, extending losses for a third straight session.

Europe

European stocks are turning in a mixed performance on Tuesday as British banking giant HSBC posted disappointing earnings and French student leaders vowed to carry out further protests despite government concessions on education aimed at easing mounting unrest.

France’s official statistical agency INSEE reported earlier today that a measure of French consumer confidence plunged to its lowest level since June 2013 in October, weighed down by widespread protests in the country over education, cost of living, and public policy.

Elsewhere, U.K. shop price inflation accelerated to its highest level in two and a half years in October, the British Retail Consortium said.

The shop price index climbed 2.1 percent year-on-year in October, faster than the 1.4 percent increase seen in September.

While the U.K.’s FTSE 100 Index is down by 0.8 percent, the German DAX Index is up by 0.4 percent and the French CAC 40 Index is up by 0.5 percent.

Lender HSBC has shown a substantial move to the downside after its third-quarter profit narrowly missed forecasts.

Reckitt Benckiser shares have also slumped. The consumer goods group cut its sales guidance for the year after third-quarter sales missed expectations due to an unexpected slowdown in the United States.

Beiersdorf shares have also tumbled. The German consumer goods maker reported Q3 sales below expectations.

French telecom group Orange has also fallen despite reporting higher third-quarter revenue and raising its 2026 core earnings growth target.

Meanwhile, RWS Holdings, a London-listed AI solutions company, has advanced. The company said organic revenue rose about 3 percent to September 30 after a decline the year before.

Porsche has also rallied. The luxury sports car manufacturer confirmed its 2026 outlook after reporting a sharp rebound in nine-month operating profit.

Swedish industrial company Alfa Laval has also moved to the upside after reporting record order intake in the third quarter.

Swiss pharma company Novartis has also moved notably higher after raising its annual core operating income outlook.

U.S. Economic News

Largely reflecting a surge in orders for transportation equipment, the Commerce Department released a report on Tuesday showing new orders for U.S. manufactured durable goods shot up by more than expected in the month of September.

The Commerce Department said durable goods orders jumped by 1.8 percent in September following a revised 0.1 percent uptick in August.

Economists had expected durable goods orders to grow by 1.4 percent compared to the 0.1 percent dip that had been reported for the previous month.

Excluding the 4.6 percent spike in orders for transportation equipment, durable goods orders climbed by 0.5 percent in September after rising by 0.3 percent in August. Ex-transportation orders were expected to increase by 0.6 percent.

At 9 am ET, Standard & Poor’s is scheduled to release its report on home prices in major metropolitan areas in the month of August.

The Commerce Department is due to release its report on hew home sales in the month of September at 10 am ET. New home sales are expected to plunge by 4.2 percent to an annual rate of 655,000 in September after spiking by 6.4 percent to an annual rate of 684,000 in August.

Also at 10 am ET, the Conference Board is scheduled to release its report on consumer confidence in the month of October. The consumer confidence index is expected to dip to 80.4 in October after slumping to 81.9 in September.

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.