US Stocks Futures Trade Higher A Day After A Rout In Nvidia And Other Tech Stocks: Investors Brace For Fed Decision, Big Tech Earnings

U.S. stock futures rebounded on Tuesday, recovering from significant technology sector losses on Monday. All major market indices showed gains, except the small-cap index gauge Russell 2000.

Investors are closely watching the Federal Reserve’s interest rate decision this week, which coincides with the earnings reports of five out of the seven “Magnificent 7” tech giants.

The 10-year Treasury yield stood at 4.57%, while the two-year yield was at 4.22%. According to the CME Group's FedWatch tool, there is a 99.5% chance that the Federal Reserve will keep interest rates unchanged on Wednesday.

Futures	Change (+/-)
Nasdaq 100	0.68%
S&P 500	0.38%
Dow Jones	0.042%
Russell 2000	-0.05%

Both the SPDR S&P 500 ETF SPY and the Invesco QQQ Trust ETF QQQ were trading higher in premarket on Tuesday. SPY was up by 0.40% to $601.76, while QQQ gained 0.70% to $517.80, according to Benzinga Pro data.

Cues From The Last Session

U.S. stocks closed mixed Monday, with Nasdaq tumbling 3%. Tech stocks plunged after China’s DeepSeek unveiled an open-source AI model surpassing ChatGPT at lower costs.

AT&T Inc T beat Q4 earnings and revenue estimates for the fourth quarter. Economic data showed improvement in December, with the Chicago Fed National Activity Index reaching a seven-month high of 0.15 and U.S. building permits increasing 0.7%.

Healthcare, financials, and consumer staples sectors gained, while tech and utilities lagged.

Index	Performance (+/-)	Value
Nasdaq Composite	-3.07%	19,341.83
S&P 500	-1.46%	6,012.28
Dow Jones	0.65%	44,713.58
Russell 2000	-1.03%	2,284.02

Insights From Analysts

Talking about DeepSeek's impact on markets Jeremy Siegel, senior economist at WisdomTree and former Professor at the University of Pennsylvania said that such events could derail the ‘Magnificent 7' and the tech narrative.

"This could finally signal the shift from growth to value stocks," he added.

On the upcoming FOMC decision on interest rates, he added, "The Fed's cautious stance reinforces stability, while Trump's policies, though unconventional, appear growth-focused in key areas like AI and investment into the U.S."

However, Trump's cryptocurrency policy remains ambiguous, particularly regarding a potential Bitcoin strategic reserve, he said. "Markets are awaiting clarity as this will have significant implications for the crypto space."

Carson Research's Ryan Detrick pointed out in an X post that over the last two weeks, an average of 334.6 stocks a day have advanced. When such average returns were observed during March 2023, the index gained 27% over the next 12 months.

The past 10 days a total of 3,346 stocks in the S&P 500 have advanced, or 334.6 avg a day over a two week span.

That is the best 10 day number since 3/31/2023.

The S&P 500 went up four straight months after that and gained 27% the next 12 months.
— Ryan Detrick, CMT (@RyanDetrick) January 28, 2025

See Also: How to Trade Futures

Upcoming Economic Data

Here’s what investors will keep an eye on Tuesday:

Durable goods orders data for December will be out by 8:30 a.m., ET.

November's S&P Case-Shiller home price index for 20 cities will be released at 9:00 a.m., ET.

Consumer confidence data for January will be announced at 10:00 a.m., ET.

Stocks In Focus:

General Motors Co. GM was up 0.98% in premarket on Tuesday ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.86 per share on revenue of $43.61 billion.

Boeing Co. BA was up 0.99% despite Wall Street expecting it to report a quarterly loss of $2.44 per share on revenue of $16.17 billion, before the opening bell.

Starbucks Corp. SBUX was down 0.6% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of 67 cents per share on revenue of $9.32 billion.

Brown & Brown Inc. BRO was up 2.93% after it posted better-than-expected results for its fourth quarter on Monday.

Nucor Corp. NUE was up 0.22% as it reported upbeat fourth-quarter financial results after the market closed on Monday.

IMAC Holdings Inc. BACK was up 117.13% after it launched Ignite Proteomics, a subsidiary focused on protein-based cancer treatment selection.

ZK International Group Co. ZKIN was up 52.05% after it reported a year-over-year increase in FY24 EPS result.

Commodities, Gold And Global Equity Markets:

Crude oil futures were trading higher in the early New York session by 0.33% to hover around $73.41 per barrel.

The gold spot index was up by 0.13% to $2,744.16 per ounce. The Dollar Index was up 0.51% at 107.892 level.

Asian markets closed mixed on Monday as China's CSI 300, Australia's ASX 200, and Japan's Nikkei 225 index fell. Whereas, South Korea's Kospi, Hong Kong's Hang Seng, and India's S&P BSE Sensex rose. European markets were higher in trade.

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