U.S. Stock Index Futures Rise as Investors Await Fed Minutes, Economic Data
U.S. stock index futures climbed on Tuesday as investors anticipated insights from the Federal Reserve's upcoming meeting minutes. The minutes, scheduled for release on Wednesday, will provide clues regarding the central bank's policy stance following a recent decline in Treasury yields.
Fed Officials' Commentary Raises Inflation Concerns
Despite the expected rate hold at 4.25% to 4.5% during the Fed's January meeting, hawkish comments from Chair Jerome Powell and other officials have raised concerns about the Fed's commitment to rate cuts this year.
Muted Impact of Tariffs, Weakening Retail Sales
Fed Governor Christopher Waller downplayed the potential impact of President Trump's recently imposed tariffs on prices, while Philadelphia Fed President Patrick Harker expressed no immediate need for policy changes. Meanwhile, weaker-than-expected retail sales data last Friday further supported expectations for accommodative monetary policy.
Stock Market Gains, Global Risk-Taking
Despite volatility triggered by trade concerns, Wall Street's main indices posted weekly gains last week. Risk appetite also increased globally, fueled by speculation of a peace deal between Russia and Ukraine.
Upcoming Earnings Season and Corporate News
Earnings season will witness a slowdown this week, with Walmart's results closely watched as a barometer of consumer spending. S&P 500 companies are forecast to report a 15.3% year-over-year earnings growth, surpassing earlier estimates.
Premarket Moves
Megacap and growth stocks gained in premarket trading, led by Tesla's 1% increase. Intel surged 5.2% amid reports of potential deals involving its rivals. Constellation Brands jumped 9.3% after Warren Buffett's Berkshire Hathaway disclosed an investment in the company.