Futures Pointing To Roughly Flat Open On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a roughly flat open on Tuesday, with stocks likely to show a lack of direction following the strong upward move seen over the two previous sessions.

Traders may take a breather following the recent rally, which has seen the major averages climbed back within striking distance of their record highs.

While the corporate earnings season is off to a positive start, traders may be reluctant to continue buying stocks amid lingering concerns about U.S.-China trade tensions and the ongoing government shutdown.

A lack of major U.S. economic data due in part to the shutdown may also keep some traders on the sidelines ahead of the release of closely watched consumer price inflation data on Friday.

With most other economic reports indefinitely delayed, the inflation data could impact the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next week.

Currently, the Fed is widely expected to continue cutting interest rates at its next two meetings, with CME Group's FedWatch Tool indicating a 97.8 percent chance of a quarter point rate cut next week and a 95.5 percent chance of another quarter point rate cut in December.

Among individual stocks, shares of General Motors (GM) are moving sharply higher in pre-market trading after the auto giant reported better than expected third quarter results and raised its full-year guidance.

Beverage giant Coca-Cola (KO) is also seeing significant pre-market strength after reporting third quarter results that exceeded analyst estimates on both the top and bottom lines.

On the other hand, shares of Northrop Grumman (NOC) may move to the downside after the defense company reported better than expected third quarter earnings but weaker than expected revenues.

Following the upward move seen over the course of last Friday's session, stocks showed a more significant move to the upside during trading on Monday. The major averages all moved sharply higher, climbing back within striking distance of their record highs.

The major averages moved roughly sideways after an early rally, hovering firmly in positive territory. The Nasdaq surged 310.57 points or 1.4 percent to 22,990.53, the S&P 500 jumped 71.12 points or 1.1 percent to 6,735.13 and the Dow shot up 515.97 points or 1.1 percent to 46,706.58.

Apple (AAPL) helped to lead the markets higher, with the tech giant surging by 3.9 percent to a new record closing high.

The jump by Apple came after Loop Capital upgraded its rating on the company's stock to Buy from Hold due to strong demand for the iPhone 17 series.

Positive sentiment may also have been generated in reaction to comments from National Economic Council Director Kevin Hassett, who suggested the ongoing government shutdown could end this week.

Hassett told CNBC's "Squawk Box" he expects moderate Democrats to cross the aisle to end the government shutdown, which has entered day 20 today.

If Democrats continue to refuse to approve a funding bill unless it includes an extension of enhanced Obamacare tax credits, Hassett indicated the White House could take "stronger measures" in order to bring them to the table.

The rally on Wall Street also came after a report from the Wall Street Journal said the Trump administration is quietly watering down some of the tariffs that underpin the president's signature economic policy.

The Wall Street Journal said President Donald Trump has exempted dozens of products from his "reciprocal tariffs" in recent weeks and offered to carve out hundreds more goods when countries strike trade deals with the U.S.

Steel stocks showed a substantial move to the upside on the day, driving the NYSE Arca Steel Index up by 3.5 percent.

Cleveland-Cliffs (CLF) led the sector higher, skyrocketing by 21.5 percent after revealing plans to look into building a rare earths mining business.

A significant rebound by the price of gold also contributed to significant strength among gold stocks, as reflected by the 3.0 percent surge by the NYSE Arca Gold Bugs Index.

Airline, banking, oil service and semiconductor stocks also turned in strong performances on the day, moving higher along with most of the other major sectors.

Commodity, Currency Markets

Crude oil futures are climbing $0.48 to $58 a barrel after edging down $0.02 to $57.52 a barrel on Monday. Meanwhile, after soaring $146.10 to $4,359.40 an ounce in the previous session, gold futures are plunging $125.70 to $4,233.70 an ounce.

On the currency front, the U.S. dollar is trading at 152.13 yen compared to the 150.74 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1606 compared to yesterday's $1.1640.

Asia

Asian stocks advanced on Tuesday after U.S. President Donald Trump indicated the United States and China are on track for a significant trade agreement, adding that Beijing had been "very respectful" and was already paying "tremendous amounts of money" under existing tariffs.

"A lot of countries took advantage of the U.S., and they are not able to take advantage anymore. China's paying 55 percent and a potential 155 percent come November 1 unless we make a deal," Trump said.

China's Shanghai Composite Index rallied 1.4 percent to 3,916.33 after data showed China's economy grew 4.8 percent in the third quarter of this year, outpacing consensus estimates, driven by exports amid weak consumption and persistent deflation.

Hong Kong's Hang Seng Index climbed 0.7 percent to 26,027.55 as Chinese leaders gathered for a crucial four-day plenum to finalize the 2026-2030 five-year plan.

Japanese markets extended their record-breaking rally after fiscal dove Sanae Takaichi won a historic vote to become the country's first female prime minister.

The Nikkei 225 index closed up 0.3 percent at 49,316.06 after hitting a high of 49,945.95 earlier. The broader Topix Index finished marginally higher at 3,249.50.

Among the top gainers, video game maker DeNA surged 6.6 percent and semiconductor manufacturer Renesas Electronics added 4.1 percent.

Seoul stocks eked out modest gains to extend gains for a fifth day running and hit a fresh record high, with automakers and defense stocks leading the surge.

The Kospi edged up by 0.2 percent to 3,823.84. Hyundai Motor jumped 3.4 percent and Hanwha Aerospace advanced 2.2 percent.

Semiconductor-related shares such as Samsung Electronics and SK Hynix took a breather following recent rallies amid a global AI-driven memory-chip boom.

Australian markets rose notably to a record close, with mining stocks leading the way higher after the United States and Australia signed a deal intended to boost supplies of rare earths and other critical minerals.

The benchmark S&P/ASX 200 Index rose 0.7 percent to 9,094.70, while the broader All Ordinaries Index settled 0.70 percent higher at 9,390.10.

Heavyweight BHP jumped 2.3 percent, while smaller rival South32 surged 4.5 percent after posting better-than-expected manganese output for the first quarter. Latrobe Magnesium soared 15.4 percent, and Evolution Mining added 4.4 percent.

The excitement spilled over to New Zealand markets, where the benchmark S&P/NZX-50 Index closed 0.3 percent higher at 13,377.85.

Europe

European stocks have moved modestly higher on Tuesday, with investor focus firmly on corporate earnings and ongoing U.S-China trade tensions.

In economic news, the U.K. budget deficit widened in September on higher expenditure, the Office for National Statistics said.

Public sector net borrowing increased to 20.2 billion pounds from 18.6 billion pounds in the previous year. This was the highest September borrowing since 2020.

The French CAC 40 Index is up by 0.5 percent, the U.K.'s FTSE 100 Index is up by 0.3 percent and the German DAX Index is up by 0.1 percent.

Vouchers and benefit cards provider Edenred has soared after reporting third-quarter revenue above expectations.

Warehousing group SEGRO has also rallied after delivering a strong third quarter, supported by improving occupier sentiment and increased pre-letting activity.

HSBC Holdings has also advanced as the lender appointed former NatWest executive David Lindberg as CEO of its U.K. business.

On the other hand, transport and infrastructure operator Getlink has moved to the downside in Paris after reporting flat third quarter revenue.

BHP has also moved lower in London after the mining giant reported a 2 percent drop in its fiscal first quarter iron ore output.

Eurofins Scientific has also slumped after reporting third quarter revenue in the BioPharma segment grew just 0.4 percent organically.

Swedish telecoms operator Tele2 has also moved lower after its third quarter revenue came in below expectations.

U.S. Economic News

Federal Reserve Governor Christopher Waller is scheduled to deliver opening remarks before the Payments Innovation Conference in Washington, D.C. at 9 am ET.