Nasdaq, S&P 500 Futures Tread Water Ahead Of Nvidia Earnings, Fed Minutes: Economist Says Markets Coming To Terms With ‘Trumpian Volatility’

U.S. stock futures traded flat to slightly up in Tuesday’s overnight session after the euphoria over the U.S.-European Union (EU) trade deal set off a “risk-on” mood in the market.

All eyes are on Nvidia  Corp.’s (NVDA) earnings report, due after the close, as traders recalibrate their expectations concerning the artificial intelligence momentum amid the looming uncertainties. 

As of 10:49 p.m. ET, futures tied to the S&P 500 were little changed and to the Nasdaq Composite Index edged up 0.02%. The Dow and the Russell 2000 futures fell 0.01% and 0.12%, respectively.

Crude oil futures rose moderately in the Asian session after expectations of an OPEC+ supply increase on Tuesday exerted downward pressure on the commodity. On the other hand, gold futures traded on a flat note.

The 10-year Treasury note rebounded by 2.7 basis points to 4.461% in the Asian hours.

Asian stocks were mostly higher, encouraged by the positive Wall Street cues and the dollar’s strength. The greenback firmed up in the Asian session, extending the gains from overnight.

The minutes of the May Federal Open Market Committee (FOMC) are due at 2 p.m. ET. The central bank kept the Fed funds rate unchanged at the meeting, defying political pressure, preferring to err on the side of caution.

Among the earnings catalysts for the day are the reports from Nvidia, Abercrombie & Fitch (ANF), Capri Holdings (CPRI), Dick’s Sporting Goods (DKS), Macy’s (M), Agilent Technologies (A), C3.ai (AI), HP, Inc. (HPQ), nCino (NCNO), Nordson (NDSN), Nutanix (NTNX), Pure Storage (PSTG), Salesforce (CRM), SentinelOne (S), and Synopsys (SNPS).

On Tuesday, stocks rallied out of the gates as the traders took stock of the EU trade deal and a slew of economic data. Consumer confidence rebounded in May amid the tariff pause, and durable goods orders fell less than expected, allaying concerns regarding the economy falling off the cliff. 

Carson Group Chief Market Strategist Ryan Detrick braces for more and stronger gains ahead. He noted that a weekly American Association of Individual Investor (AAII) survey showed bullish sentiment among investors exceeded bearishness after 15 consecutive weeks of bear dominance.

The strategist said the bullish mood is more pronounced when a long bearish streak ends.

“S&P 500 up a median of nearly 22% a year later and up at least double digits 7 of 8 times,” he added.

WisdomTree Senior Economist Jeremy Siegel said in his weekly commentary that the market has grown accustomed to “Trumpian volatility” and largely expects these new escalated tariffs to ultimately lead to a de-escalation and negotiation. 

The economist said the market sees even a 20% probability of a higher baseline tariff as negative, adding, "Because of the cancellation, I believe equities can remain on a mildly constructive path.”

The Invesco QQQ Trust (QQQ) ETF and the SPDR S&P 500 ETF (SPY) ended Tuesday’s session up 2.35% and 2.08%, respectively.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 1.81%, and the iShares Russell 2000 ETF (IWM) rallied 2.54%.

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