Stock Index Futures Climb as Chipmakers Extend Rebound, Earnings in Focus

September S&P 500 E-Mini futures (ESU26) are up +0.57%, and September Nasdaq 100 E-Mini futures (NQU26) are up +1.39% this morning, pointing to a higher open on Wall Street as a rebound in chipmakers gained momentum.

Chip and AI infrastructure stocks climbed in pre-market trading as investors snapped up names tied to the AI buildout at lower valuations after they suffered their worst week in more than a year. Sandisk (SNDK) was up over +8%, Marvell Technology (MRVL) was up more than +6%, and Intel (INTC) was up over +5%. The positive mood followed strong gains for semiconductor and other AI-related stocks in South Korea, Taiwan, and Japan.

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Meanwhile, the price of WTI crude edged higher on Tuesday as the U.S. and Iran exchanged strikes for a 10th straight day even as mediators worked to revive a truce, while Yemen's Houthi militant group threatened shipping in the Red Sea.

Investors are now awaiting a new wave of corporate earnings reports.

In yesterday's trading session, Wall Street's main stock indexes ended mixed. Warner Bros. Discovery (WBD) fell over -3% and was among the top percentage losers on the Nasdaq 100 after a federal judge temporarily paused Paramount Skydance's $110 billion takeover of the company, saying it "likely" violates antitrust law. Also, shares of home builders and suppliers slid after the 10-year T-note yield jumped, with D.R. Horton (DHI) falling more than -3% and KB Home (KBH) dropping over -2%. In addition, Sweetgreen (SG) slumped more than -6%, extending last week's slide amid concerns that an outbreak of a diarrhea-causing parasite linked to fresh produce will prompt U.S. consumers to avoid the salad chain. On the bullish side, chip and AI infrastructure stocks advanced, with Marvell Technology (MRVL) rising over +3% and Sandisk (SNDK) gaining more than +2%.

Economic data released on Monday showed that U.S. leading economic indicators edged lower in June amid weaker consumer spending. The Conference Board's Leading Economic Index for the U.S. fell -0.2% m/m in June, weaker than expectations of -0.1% m/m.

In tariff news, the Trump administration pledged to impose a new 50% tariff on some Canadian goods, including milk, hockey equipment, beer, and plywood, over what it described as unfair treatment of American alcohol, automobiles, and dairy products.

"While the geopolitical situation is fluid and volatility may pick up, solid overall earnings should provide support for equities in the coming months," according to Ulrike Hoffmann-Burchardi at UBS Chief Investment Office.

Second-quarter corporate earnings season is gathering pace, with investors awaiting reports from notable companies today, including Charles Schwab (SCHW), Danaher (DHR), 3M Company (MMM), Northrop Grumman (NOC), and General Motors (GM). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +26% jump in quarterly earnings for Q2 compared to the previous year.

U.S. rate futures have priced in an 83.4% probability of no rate change and a 16.6% chance of a 25 basis point rate hike at the upcoming monetary policy meeting.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.60%, up +0.11%.

The Euro Stoxx 50 Index is up +0.70% this morning, boosted by tech and defense stocks. Technology stocks were among the biggest gainers on Tuesday as investors grew more optimistic about names exposed to AI. Defense and mining stocks also climbed. At the same time, media stocks underperformed. The ZEW economic research institute said on Tuesday that German investor morale improved more than expected in July, supported by stronger confidence in industries affected by the Middle East conflict and the reform package proposed by the country's government. "The economic outlook continues to improve in July," ZEW President Achim Wambach said. Separately, data showed that the U.K.'s unemployment rate held steady and wage growth remained unchanged in the three months through May, reinforcing expectations that the Bank of England will keep interest rates unchanged next week. In addition, the European Central Bank's quarterly Bank Lending Survey showed that Eurozone banks tightened credit standards in the second quarter amid concerns over geopolitical instability, and they expect further tightening in the current quarter. Meanwhile, investors are looking ahead to earnings from major U.S. technology companies and the ECB's monetary policy decision due later this week. Investors are also awaiting fresh policy details from new U.K. Prime Minister Andy Burnham. In corporate news, Wienerberger AG (WIE.V.DX) sank over -5% after issuing a profit warning.

U.K. Average Earnings ex Bonus, U.K. Unemployment Rate, Germany's ZEW Economic Sentiment Index, and Eurozone's ZEW Economic Sentiment Index were released today.

U.K. Average Earnings ex Bonus rose +3.4% in the three months to May, in line with expectations.