S&P futures experienced an uptick on Tuesday, following a decline in the S&P 500 as investors adopted a cautious stance in anticipation of Nvidia’s earnings report and an important inflation update scheduled for later this week. Futures associated with the Dow Jones Industrial Average increased by 237 points, representing a 0.4% rise. S&P 500 futures increased by 0.5%, whereas Nasdaq 100 futures rose by 1%. On Monday, the S&P 500 experienced a decline of 0.28%, while the Nasdaq Composite saw a decrease of 0.76%. This downturn was primarily influenced by losses in semiconductor stocks and various technology companies, which exerted pressure on the overall market. Meanwhile, the index increased by 140.15 points, or 0.26%. U.S. bond yields experienced a decline on Tuesday morning following reports indicating that the Treasury Department might utilise its $1 trillion General Account to finance its intentions to increase government bond purchases.

The U.S. 10-year Treasury declined by over 3 basis points on the day, settling at 4.7%. Investors were reducing exposure to risk as they processed the recent pullback and prepared for Nvidia’s earnings report this week. The chip giant’s quarterly report is scheduled for release on Wednesday following the market’s close. Inflation remains a primary concern for traders, as the personal consumption expenditure price index for July is set to be released on Wednesday. Another catalyst for stocks and the bond market approaches on Friday, as Federal Reserve Chairman Kevin Warsh is anticipated to deliver a speech at the Fed’s annual symposium in Jackson Hole, Wyoming. His speaking engagement follows the Treasury Department’s announcement of a plan to address long-dated Treasury yields. “For investors, the essential question now is how, if at all, to respond to the rise in yields,” UBS strategists said in a note on Tuesday morning.

“Our base case remains that yields should decline as inflation moderates. Such a benign macroeconomic outcome should support a continued broadening of the equity rally.” UBS advised traders to “stay invested as the equity rally broadens.” And “While higher yields are typically a headwind for equities, we believe strong corporate earnings and expectations of further growth should continue to support global equities broadly,” the bank said. “We now expect S&P 500 earnings per share to grow 25% this year and another 14% next year. In Europe, we see 15% growth in both 2026 and 2027, while we estimate Asia ex-Japan should enjoy earnings growth of 72% this year.” On the earnings front, market participants will be closely monitoring updates from Bank of Montreal and Dick’s Sporting Goods, which are scheduled to be released before the market opens on Tuesday.

Intuit, Box, and Zoom are set to release their quarterly results following the market’s closure. Investors will be observing consumer confidence data at 10 a.m. Tuesday for indications of potential weakening in consumer resilience and its implications for economic growth and the Federal Reserve’s trajectory regarding interest rates. In Asia, Japan’s Nikkei 225 closed 0.5% higher, while South Korea’s Kospi rose 0.68%. Australia’s benchmark index experienced an increase of 0.68%. Mainland China’s CSI 300 concluded the trading session with a decline of 0.24%. European stocks exhibited a general upward trend on Tuesday, with the regional Stoxx 600 reported to be up by 0.3%.