U.S. stock futures remained relatively stable on Tuesday night as investors eagerly anticipated the upcoming earnings report from Nvidia. This follows a positive turn for the Dow Jones Industrial Average, which managed to end a four-day losing streak. Dow futures saw a modest increase of 31 points, equating to a 0.07% rise. Meanwhile, S&P 500 futures and Nasdaq 100 futures also experienced slight upward movements, climbing by 0.05% and 0.02%, respectively.
In after-hours trading, shares of Okta took a significant hit, plunging over 12%. Despite the identity management software company surpassing fiscal first-quarter expectations on both revenue and earnings, it maintained its guidance due to ongoing macroeconomic uncertainty. This mixed news reflects the cautious sentiment among investors as they navigate a fluctuating market.
On the preceding day, major indices experienced a robust performance. The 30-stock Dow surged more than 700 points, marking an increase of approximately 1.8%. The S&P 500 followed suit with a 2% rise, and the Nasdaq Composite soared roughly 2.5%. These gains were partly influenced by President Donald Trump's announcement on Sunday regarding the postponement of a 50% tariff on the European Union until July 9. This announcement came after Trump initially indicated on Friday that he was not actively seeking a deal, which rekindled investor optimism that the stock market could move past the worst of the tariff chaos.
According to Rich Saperstein, chief investment officer of Treasury Partners, it is crucial for investors to look beyond the current tariff uncertainties. He stated, "It's important for investors to look past the tariff turmoil and consider the environment that will emerge post-tariffs, which includes deregulation, increased onshoring, and the benefits of the tax bill that allows for immediate expensing." Saperstein expressed confidence that the investment landscape following the tariff issues will present significant opportunities for mergers and acquisitions (M&A).
However, Saperstein also cautioned that there may be a period of uncertainty that could lead to a slowdown in the next two quarters. "I would focus on the environment post-tariffs into '26, rather than getting caught up in the immediate volatility," he advised during his appearance on CNBC's Closing Bell.
As market participants await Nvidia's earnings results, scheduled for release on Wednesday after the market closes, all eyes will be on the implications of recent China restrictions for the AI chipmaker. Despite these challenges, Nvidia reportedly sees no decline in demand for its graphics processors.
Additionally, retailers such as Macy's, Dick's Sporting Goods, and Abercrombie & Fitch are set to announce their earnings before the market opens on Wednesday, providing further insights into the retail sector's performance amid fluctuating economic conditions.
