Futures Pointing To Continued Strength On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a modestly higher open on Tuesday, with stocks poised to add to the strong gains posted in the previous session.

Technology stocks may extend yesterday's rally following the release of upbeat quarterly results from software company Palantir (PLTR).

Shares of Palantir are surging by 6.8 percent in pre-market trading after the company said its sales jumped almost 50 percent in the second quarter amid robust demand for artificial intelligence services.

Chemical maker DuPont (DD) is also seeing significant pre-market strength after reporting better than expected second quarter results and providing upbeat guidance.

On the other hand, shares of Caterpillar (CAT) may move to the downside after the construction equipment maker reported weaker than expected second quarter earnings.

Telehealth company Hims & Hers Health (HIMS) is also likely to come under pressure after reporting second quarter revenues that missed analyst estimates.

Overall trading activity may be somewhat subdued, however, as traders take a step back to assess the recent volatility in the markets.

Stocks moved sharply higher early in the session on Monday and continued to turn in a strong performance throughout the day. With the upward move, the major averages offset a large chunk of the notable pullback seen over the two previous sessions.

The major averages saw further upside going into the close, ending the day just off their highs of the session. The Nasdaq surged 403.45 points or 2.0 percent to 21,053.58, the S&P 500 shot up 91.93 points or 1.5 percent to 6,329.94 and the Dow jumped 585.06 points or 1.3 percent to 44,173.64.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the recent sell-off, which saw the Nasdaq and the S&P 500 pull back well off their record highs.

The steep drop seen last Friday came amid concerns about the economic impact of President Donald Trump's new tariffs, weaker than expected jobs data and a slump by shares of Amazon (AMZN).

Optimism the weak jobs data will lead the Federal Reserve to lower interest rates next month also contributed to the buying interest.

According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumped to 91.9 percent from 63.1 percent a week ago.

On the U.S. economic front, the Commerce Department released a report showing factory orders pulled back sharply in the month of June.

The Commerce Department said factory orders dove by 4.8 percent in June after soaring by an upwardly revised 8.3 percent in May.

Economists had expected factory orders to plunge by 5.0 percent compared to the 8.2 percent surge originally reported for the previous month.

Networking stocks showed a substantial move to the upside on the day, with the NYSE Arca Networking Index spiking by 10.0 percent to a record closing high.

CommScope (COMM) led the sector higher, skyrocketing by 86.3 percent after announcing an agreement to sell its connectivity and cable solutions business to Amphenol (APH).

Gold stocks also saw significant strength amid a continued surge by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 4.7 percent.

Software, brokerage and computer hardware stocks also showed strong moves to the upside, moving higher along with most of the other major sectors.

Commodity, Currency Markets

Crude oil futures are sliding $0.96 to $65.33 a barrel after slumping $1.04 to $66.29 a barrel on Monday. Meanwhile, after jumping $26.60 to $3,426.40 an ounce in the previous session, gold futures are falling $9.80 to $3,416.60 an ounce.

On the currency front, the U.S. dollar is trading at 147.71 yen compared to the 147.09 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1533 compared to yesterday's $1.1571.

Asia

Asian stocks rose for a second consecutive session on Tuesday after a Federal Reserve official said the time is nearing for interest rate cuts.

Tech shares drove the rally after data intelligence group Palantir boosted its 2025 outlook and said its sales jumped almost 50 percent in the second quarter amid robust demand for artificial intelligence services.

The dollar remained weak near a one-week low in Asian trading and gold was little changed at $3,373 per ounce, while oil extended losses on concerns of oversupply.

Chinese and Hong Kong markets extended gains from the previous session as a survey showed a strong recovery in Chinese services activity in July, with growth hitting a 14-month high on export demand.

China's Shanghai Composite Index jumped 1.0 percent to 3,617.60, while Hong Kong's Hang Seng Index gained 0.7 percent to close at 24,902.53.

Japanese markets advanced as new data showed service sector activity in the country rose at the fastest pace in five months in July.

The Nikkei 225 Index rose 0.6 percent to 40,549.54 despite the yen holding near recent highs amid hints from the Bank of Japan that rate hikes remain on the table. The broader Topix Index settled 0.7 percent higher at 2,936.54.

The BOJ's June meeting minutes showed that a few board members are in favor of resuming interest rate increases if trade friction de-escalates.

Mitsubishi Heavy Industries jumped 5.7 percent as Australia awarded the company a A$10 billion contract to deliver the first of its new navy frigates.

Technology investor SoftBank Group rallied 2.7 percent but chip-related stocks such as Advantest and Tokyo Electron ended on a subdued note.

Seoul stocks followed Wall Street higher, with the Kospi surging 1.6 percent to 3,198, led by tech stocks and battery makers. SK Hynix jumped 2.1 percent and LG Energy Solution added 2.9 percent.

Australian markets closed at a record high due to rising bets for rate cuts by the U.S. Federal Reserve and the Reserve Bank of Australia.

Investors also cheered data that showed Australia's services sector growth jumped to a 16-month high in July.

The benchmark S&P/ASX 200 Index shot up 1.2 percent to 8,770.40 points, the highest-ever closing level, led by rate-sensitive banks and real estate stocks.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 Index closed up 1.5 percent at 12,877.04.

Europe

European stocks have advanced on Monday as investors digest a slew of earnings updates and hold onto hopes that the U.S. Federal Reserve may soon pivot to monetary easing.

In economic news, business activity in the euro zone grew at a slightly faster pace in July than in June, a survey showed.

The HCOB Eurozone Composite Purchasing Managers' Index, compiled by S&P Global, rose to 50.9 from 50.6 in June - coming in below a preliminary estimate of 51.0.

Separately, Eurostat said that Eurozone producer prices rose 0.8 percent in June compared to May.

The German DAX Index is up by 0.8 percent, the U.K.'s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.3 percent.

In corporate news, Gerresheimer shares jumped nearly 3 percent. The German packaging and medical equipment maker said it plans to separate its struggling moulded glass division before initiating a subsequent sale process.

Rational AG gained 2.2 percent. The maker of commercial and industrial kitchen equipment backed its annual sales revenue growth outlook after posting improved Q2 results.

Automotive parts maker Continental declined 1.3 percent after posting lower Q2 sales.

Fashion group Hugo Boss soared 7 percent on reporting a slightly better-than-expected quarterly operating profit.

Chipmaker Infineon Technologies surged 4.7 percent after reporting solid Q3 performance and lifting guidance for operating profitability.

Fresenius Medical Care, the world's largest dialysis provider, tumbled 3.4 percent after reporting quarterly results below expectations.

Copper producer Aurubis climbed 3.3 percent as core earnings for the first nine months of the year beat forecasts.

Swiss staffing company Adecco lost 2 percent after reporting modest revenue growth in its Q2 2025 financial results.

British building materials supplier Travis Perkins jumped 6.5 percent after reporting an increase in pre-tax profits during the first half of its financial year.

Smith & Nephew shares soared 15 percent. The medical technology company has announced a $500 million share buyback after reporting better-than-expected earnings for H1 2025.

Pizza delivery specialist Domino's Pizza Group plunged 14 percent after cutting its annual profit guidance.

Energy giant BP Plc rose 2.2 percent after it returned to profit in the second quarter.

Spirits maker Diageo climbed 6.5 percent despite annual profit tumbling almost 30 percent.

Silver miner Fresnillo advanced 7.6 percent after posting a nearly fourfold increase in first-half net profit.

U.S. Economic News

The U.S. trade deficit narrowed by slightly more than anticipated in the month of June, according to a report released by the Commerce Department on Tuesday.

The Commerce Department said the trade deficit shrank to $60.2 billion in June from a revised $71.7 billion in May.

Economists had expected the trade deficit to fall to $61.6 billion from the $71.5 billion originally reported for the previous month.

The decrease in the size of the trade deficit came as the value of imports plunged by 3.7 percent to $337.5 billion, while the value of exports dipped by 0.5 percent to $277.3 billion.

At 10 am ET, the Institute for Supply Management is due to release its report on service sector activity in the month of July. The services PMI is expected to rise to 51.5 in July from 50.8 in June, with a reading above 50 indicating growth.

The Treasury Department is scheduled to announce the results of this month's auction of $58 billion worth of three-year notes at 1 pm ET.