Futures muted after stocks surge, earnings wave ahead - what's moving markets
Investing.com — U.S. stock were muted on Tuesday, as investors looked ahead to a bevy of quarterly corporate earnings and crucial economic data. Elsewhere, the Securities and Exchange Commission says a bad actor used a SIM-swapping attack to take control of its X account prior to a false post on the social media platform claiming the agency had approved a new Bitcoin-linked investment instrument, while the Bank of Japan maintains a dovish policy stance and lowers its inflation forecast for the coming fiscal year.
1. Futures muted
U.S. stock futures mostly hovered around the flatline on Tuesday, after equities surged in the previous session on hopes for strong upcoming corporate earnings and ongoing enthusiasm around artificial intelligence.
By 04:52 ET (09:52 GMT), the contracts for S&P 500 futures, Nasdaq 100 futures, and Dow futures were broadly unchanged.
A recent rally in the main averages continued on Monday, with the benchmark S&P 500 in particular jumping to its third-straight positive close for the first time this year. The tech-heavy Nasdaq Composite also rose by 0.3% despite small declines in most of the so-called Magnificent Seven megacap stocks. Meanwhile, the 30-stock Dow Jones Industrial Average climbed above 38,000 for the first time.
Stocks had logged a weak start to the year, but have since rebounded, partly due to investor optimism for a «soft landing» for the U.S. economy. In this scenario, elevated interest rates would contribute to a cooling in inflation without sparking a steep slowdown in economic activity.
«The thought of a soft landing actually [materializing] against all odds are supporting risk assets in all corners of the market,» analysts at ING said in a note.
2. Earnings parade intensifies
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