S&P 500 futures advanced on Tuesday morning following a positive start to the busy earnings week for the major averages. Market participants are anticipating the Federal Reserve’s forthcoming rate decision, scheduled for later this week. Futures associated with the broad-market index were recently observed at an increase of 0.2%, whereas Nasdaq 100 futures experienced a rise of 0.5%. Futures for the Dow Jones Industrial Average decreased by 49 points, representing a decline of 0.1%, primarily influenced by a drop in the shares of UnitedHealth. In after-hours trading, shares of prominent health insurers experienced a significant decline following the proposal from the Centers for Medicare & Medicaid Services to increase payments to Medicare Advantage insurers by a net average of only 0.09% in 2027. Humana’s shares experienced a decline of 12%, whereas CVS Health saw a decrease of nearly 10%.

President Donald Trump announced late Monday his intention to increase tariffs on South Korean automobiles, pharmaceuticals, and lumber from 15% to 25%. He referenced a postponement in the South Korean legislature’s approval of a trade agreement that the country had finalized with the U.S. the previous summer. The week commenced on a positive note for equities, bolstered by advancements in prominent technology firms. The S&P 500 experienced an increase of 0.5% during Monday’s regular trading session, whereas the Dow saw a rise of approximately 314 points, translating to a 0.6% gain. The tech-heavy Nasdaq Composite experienced an increase of 0.4%, driven by gains in Apple, Meta Platforms, and Microsoft, all of which are set to release their earnings reports later this week.

Over 90 companies within the S&P 500 index are scheduled to disclose their quarterly earnings this week. The lineup features the “Magnificent Seven” titans Meta, Tesla, and Microsoft, all of which are scheduled for Wednesday. Apple is set to disclose its results on Thursday. Earnings season has demonstrated robust performance thus far, with approximately three out of four S&P 500 companies surpassing expectations, according to sources. “Earnings season is currently at the forefront of discussions,” as per sources. “We have 200 companies set to report in the upcoming fortnight, and thus far, the outlook appears positive,” stated Adam Parker. “I believe the fundamental concern lies in the fact that the projections for the latter half of the year are excessively optimistic. The pertinent inquiry is whether we can sustain the momentum leading into the April guidance. I believe that is correct.

This week marks the Federal Reserve’s inaugural policy decision of the year. The central bank is anticipated to maintain its key rate within a target range of 3.5% to 3.75%. However, market participants will be on the lookout for indications regarding the timing of potential future rate cuts. Trading in Fed funds futures continues to indicate the possibility of two quarter percentage point reductions by the conclusion of 2026, as per sources. On the economic data front Tuesday, market participants will be attentive to the latest consumer confidence reading and home price data. On Tuesday, American Airlines and Boeing are among the companies scheduled to disclose their quarterly results.