U.S. Stock Futures Rise Amidst Fed Meeting Minutes, Trade War Concerns

U.S. stock futures advanced on Tuesday, kicking off a holiday-shortened trading week marked by the release of Federal Reserve meeting minutes.

Futures Performance

* Nasdaq 100 futures (NQ=F) gained approximately 0.4%, building on Friday's record-breaking close for the tech-heavy index.
* S&P 500 futures (ES=F) climbed 0.3%, eyeing a fresh high above the January all-time peak.
* Dow Jones Industrial Average futures (YM=F) traded little changed.

Market Dynamics

Investors remain cautiously optimistic after Monday's closure for President's Day, pondering the future trajectory of interest rates. Fed officials have expressed confidence in maintaining low rates to address rising inflation. The release of minutes from the Fed's January gathering on Wednesday is expected to provide further insights into their thinking.

Meanwhile, ongoing U.S.-Russia discussions on resolving the Ukraine war continue to impact markets. Stock markets in Europe held near record highs as investors anticipate increased defense spending in the region.

Earnings Season

Earnings season continues, with results from 46 S&P 500 companies anticipated this week. Baidu (BIDU, 9888.HK) reported a smaller-than-expected revenue decline, alleviating concerns about AI competition, although its pre-market trading saw a slight dip.

Devon Energy (DVN), Occidental Petroleum (OXY), and Toll Brothers (TOL) will release quarterly reports on Tuesday. Walmart (WMT) and Dropbox (DBX) are scheduled to announce earnings on Thursday.

Analyst Insight

Brian Sozzi of Bank of America cautions investors to take tariff developments seriously. A global trade war remains a significant risk to markets, according to 42% of fund managers surveyed, up from 30% in January.