U.S. stocks inched slightly higher on Tuesday, continuing recent gains amid optimism around a potential Federal Reserve rate cut next week.
At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average rose 33 points, or 0.1%, the S&P 500 index gained 6 points, or 0.1%, while the NASDAQ Composite climbed 40 points, or 0.2%.
The tech-heavy NASDAQ Composite posted a fresh record high close on Monday, adding to recent records from the other two benchmark indices. Underpinning sentiment were expectations that the Federal Reserve will soon cut interest rates in a bid to help support a potentially slowing U.S. labor market.
Jobs data in focus
The level of U.S. employment for the 12 months through March was likely 911,000 roles less than previously estimated, a sharp downward revision which suggests that a slowdown in the American labor market may have begun prior to the announcement of President Donald Trump’s sweeping import tariffs.
Economists had anticipated that the preliminary benchmark employment revision from the Bureau of Labor Statistics for the period from April 2024 to March 2025 would be lowered by between 400,000 and 1 million jobs. The changes aim to better factor in businesses that may have opened or closed during that time.
The estimate is based on the Quarterly Census of Employment and Wages, which is derived primarily from state unemployment insurance tax records that nearly all employers must file with state workforce agencies.
A final benchmark revision will be issued in February 2026 with the publication of the BLS’s employment report for January.
Attention is also on Thursday’s consumer price index report for August, which could be critical in determining how aggressive the Fed can be in easing policy.
The print is expected to reflect some of the inflationary effects of Trump’s tariffs, given that a bulk of them took effect last month.
Producer price index inflation data is due before this on Wednesday.
Oracle, GameStop earnings in spotlight
In the corporate sector, highlighting the earnings calendar on Tuesday will be software name Oracle (NYSE:ORCL), which is due to report its latest quarterly returns after the closing bell.
Markets will be keen to see if Oracle provides another glimpse into the state of a boom in enthusiasm around artificial intelligence.
GameStop (NYSE:GME) is also set to report its fiscal second-quarter results after the market close, following a nearly 26% drop in its stock year-to-date.
Meanwhile, Apple (NASDAQ:AAPL) will be hosting its much-anticipated “Awe Dropping” fall event later Tuesday at Apple Park in Cupertino.
The company is expected to unveil the iPhone 17 series, including a razor-thin “Air” variant, alongside updates across the Apple Watch line and a third-generation AirPods Pro.
Elsewhere, Atlassian (NASDAQ:TEAM) shares rose after the software maker announced plans to phase out its Data Center products over the next six years, raising hopes this could lift cloud adoption and revenue growth.
Core & Main (NYSE:CNM) stock slumped after the water infrastructure firm reported fiscal second-quarter results that missed market forecasts and issued soft guidance for the current quarter.
Crude rises after OPEC+ decision
Oil prices headed higher, continuing to benefit from the decision of the OPEC+ production group to raise output at a substantially smaller pace next month than earlier in this year.
At 09:35 ET, Brent futures gained 1.4% to $66.92 a barrel, and U.S. West Texas Intermediate crude futures rose 1.5% to $63.22 a barrel.
The Organization of Petroleum Exporting Countries and allies, known as OPEC+, agreed on Sunday to raise production by a cumulative 137,000 barrels per day in October, much lower than monthly hikes of about 555,000 bpd in September and August and 411,000 bpd in earlier months.
Prices were also supported by speculation of more sanctions on Russia after U.S. President Donald Trump said he was ready to move to a second phase of restrictions in the wake of continued attacks on Ukraine.
Source :
https://www.investing.com/news/stock-market-news/us-stock-futures-steady-after-nasdaq-hits-record-high-fed-cut-hopes-in-focus-4230372
