Key Points
- S&P 500 fell 0.20% to 6,850.43 after Monday’s modest gain of 0.17%.
- Earnings focus on AMD, Uber, Spotify, Pfizer, and Super Micro Computer.
- Tech sentiment buoyed by AI-led strength in Amazon and Nvidia.
U.S. equities were mixed on Tuesday, with S&P 500 futures edging lower as traders reassessed valuations following a flurry of corporate earnings. The benchmark index slipped 0.20% to 6,850.43, though it remains near record territory after Monday’s AI-driven rally.
Earnings Momentum Slows
After the bell, Palantir Technologies fell nearly 3% in extended trading despite beating Wall Street forecasts for the third quarter and issuing strong guidance.
In contrast, Hims & Hers Health surged over 5% after announcing talks with Novo Nordisk to offer weight-loss drug Wegovy through its telehealth platform.
Traders now await earnings from AMD, Uber, Spotify, Pfizer, and Super Micro Computer, which are expected to provide further insight into the resilience of corporate margins amid slowing global growth.
AI Stocks Drive Prior Session
During Monday’s regular session, both the S&P 500 and Nasdaq Composite extended gains up 0.17% and 0.46% respectively as AI-related tech stocks continued to outperform.
Amazon rallied 4% to record highs after unveiling a $38 billion partnership with OpenAI, while Nvidia rose more than 2% after Microsoft secured approval from the U.S. Commerce Department to supply its chips to UAE-based data centres.
Meanwhile, the Dow Jones Industrial Average declined 0.48%, dragged by weakness in energy and financial shares.
Technical Analysis
The S&P 500 slipped 0.20% to 6,850, pausing after October’s strong rally as traders digested fresh signals from the Federal Reserve and renewed U.S.–China dialogue.
The index remains in a firm uptrend, holding above its key moving averages (5, 10, 30-day), though the MACD is starting to flatten, hinting at cooling momentum after weeks of steady gains.
Support sits near 6,750, while resistance remains at 6,900; a breakout above that level could open the path toward 7,000, while a drop below 6,750 may trigger short-term consolidation.
Recent news has provided a mixed backdrop. The Trump–Xi meeting helped calm trade tensions, particularly over semiconductor and supply chain cooperation, lifting global sentiment.
However, optimism was tempered by the Fed’s latest remarks, which confirmed last week’s 25 bps rate cut but warned that a December move isn’t guaranteed, keeping rate-sensitive sectors cautious.
Technically, the broader structure remains bullish but overextended, suggesting the index may consolidate before making its next move. Traders should watch for sustained closes above 6,900 to confirm continued strength, while a dip below 6,750 could invite mild profit-taking.
With U.S. earnings still outperforming and geopolitical sentiment improving, the bias leans higher, though momentum is likely to slow in the near term.
Outlook
Market sentiment remains broadly constructive, fuelled by the ongoing AI boom and improving trade relations between the U.S. and China. However, with a dense earnings calendar and the Fed’s policy outlook still uncertain, short-term volatility is expected to persist.
Traders are likely to remain data-dependent, focusing on corporate forward guidance and inflation readings later this week.
