U.S. stock futures traded slightly lower on Tuesday as markets paused ahead of a packed week of corporate earnings and awaited progress on Washington’s political gridlock.
By 05:55 ET (09:55 GMT), Dow Jones futures slipped 35 points (0.1%), while S&P 500 and Nasdaq 100 futures each fell 0.1%. The pullback comes after Monday’s modest rally, which saw Wall Street’s main indexes gain on strength in technology and financial shares.
Investor sentiment improved after White House adviser Kevin Hassett suggested the federal government shutdown could end “sometime this week.” The month-long standoff has delayed key economic reports and raised concerns about first-quarter growth.
Meanwhile, optimism around U.S.-China trade relations has provided an additional lift, with President Donald Trump and Chinese President Xi Jinping expected to meet in South Korea later this month to discuss trade and technology issues.
Netflix Headlines Earnings Parade
Investors are now bracing for a busy earnings calendar, with several corporate heavyweights set to report this week.
The highlight of Tuesday’s schedule is Netflix (NASDAQ:NFLX), which will release quarterly results after the closing bell. The streaming giant’s shares have surged 39% year-to-date, supported by optimism around its advertising-tier expansion and international growth.
However, analysts are watching closely for commentary on recent backlash involving an animated series controversy, which prompted calls from Elon Musk for users to cancel subscriptions.
Other major names set to report include:
- GE Aerospace (NYSE:GE)
- Coca-Cola (NYSE:KO)
- Philip Morris (NYSE:PM)
- RTX Corp (NYSE:RTX)
After hours on Monday, Zions Bancorporation (NASDAQ:ZION) posted stronger-than-expected earnings, helping ease recent concerns about U.S. regional banks. The firm had previously disclosed a $50 million charge-off tied to two loans under fraud investigation and a rise in credit-loss reserves.
Oil Prices Steady After Sharp Drop
Oil prices stabilized on Tuesday, holding near five-month lows after heavy losses in the prior session. Brent crude gained 0.4% to $61.26 per barrel, while West Texas Intermediate (WTI) added 0.4% to $57.26.
The decline in prices reflects oversupply concerns and fears that the prolonged U.S.-China trade dispute could dampen demand. The International Energy Agency recently projected a potential global surplus of nearly 4 million barrels per day by 2026, deepening pressure on producers.
While short-term optimism over trade talks supports risk appetite, analysts say markets remain sensitive to OPEC+ output decisions and macroeconomic data, both of which could determine the next major move for oil and equities alike.