December S&P 500 E-Mini futures (ESZ26) are down -0.02%, and December Nasdaq 100 E-Mini futures (NQZ26) are down -0.08% this morning, taking a breather after Monday’s strong gains, while investors await the start of the Federal Reserve’s two-day policy meeting along with a fresh batch of U.S. economic data and corporate earnings reports.
The price of WTI crude edged higher on Tuesday, reversing earlier losses as traders weighed regional diplomatic efforts to prevent an escalation in the U.S.-Iran war and uncertainty surrounding upcoming elections in the U.S. and Israel. Senior officials from Saudi Arabia, Pakistan, and Turkey traveled to Tehran for talks on Monday, with participants agreeing to continue discussions, according to the IRIB news agency. Meanwhile, Saxo Bank analysts said that “upcoming elections in the U.S. and Israel add another layer of uncertainty, potentially complicating diplomatic efforts and keeping a geopolitical risk premium embedded in prices.”
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In yesterday’s trading session, Wall Street’s main stock indexes closed higher, led by gains in the technology sector. Chip and AI infrastructure stocks rallied as Anthropic’s initial public offering filing reignited enthusiasm for the AI trade, with Arm Holdings (ARM) rising over +6% and Intel (INTC) gaining more than +4%. Also, Tesla (TSLA) climbed over +5% after Barclays upgraded the stock to Overweight from Equal Weight with a price target of $450, citing an M&A opportunity with SpaceX. In addition, Microsoft (MSFT) rose more than +1% after the tech giant reportedly offered buyouts to roughly 60,000 employees, representing about 27% of its full-time workforce. On the bearish side, Fair Isaac (FICO) tumbled over -13% and was the top percentage loser in the S&P 500 after the company said it would keep its mortgage credit-score pricing at $10 for lenders participating in its new Preferred Program.
“The market needed this, just like it needed SpaceX,” Jay Woods at Freedom Capital Markets said, referring to Anthropic. “This is a big confidence booster, and I anticipate the demand is going to be there because people have been waiting and talking about this one for a long time.”
The Fed kicks off its two-day meeting later in the day. The central bank is widely expected to leave the federal funds rate unchanged in a range of 3.75% to 4.00% on Wednesday, following last month’s rate hike, its first since 2023. U.S. rate futures are currently pricing in just a 10.5% chance of a hike. Instead, Fed watchers expect a move at the December meeting, the final one of 2026, putting the spotlight on Chairman Kevin Warsh’s post-meeting press conference. Mr. Warsh is unlikely to provide much guidance on December, but may also be reluctant to push back against market expectations for a hike.
Third-quarter corporate earnings season is in full swing, with investors awaiting fresh reports from major companies today, including Visa (V), Coca-Cola (KO), Seagate Technology Holdings (STX), Boeing (BA), and United Parcel Service (UPS). According to Bloomberg Intelligence, S&P 500 companies are expected to post an average +25% jump in third-quarter earnings from a year earlier.
On the economic front, investors will focus on the U.S. Conference Board’s consumer confidence index, which is set to be released in a couple of hours. Economists forecast that the board’s consumer confidence index will dip to 81.2 in October from 81.9 in September.
U.S. durable goods orders and core durable goods orders data will also be closely monitored today. Economists project September durable goods orders to rise +2.0% m/m and core durable goods orders, which exclude transportation, to increase +0.6% m/m, compared with the prior month’s figures of unchanged m/m and +0.3% m/m, respectively.
The U.S. S&P/CS HPI Composite - 20 n.s.a. will be reported today. Economists expect the August figure to pick up to +2.6% y/y from +2.5% y/y in July.
U.S. new home sales data will come in today. Economists project September new home sales at 651K, compared with 684K in August.
The Richmond Fed manufacturing index will be released today as well. Economists expect the index to come in at 0 in October, up from -2 in September.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.99%, down -0.02%.
The Euro Stoxx 50 Index is down -0.09% this morning as investors digested mixed results from some of the region’s largest companies. Bank stocks slumped on Tuesday, pressured by a drop of more than -6% in HSBC (HSBA.LN) after the lender reported disappointing Q3 results. Consumer-related stocks also slid, with Reckitt Benckiser Group (RKT.LN) falling more than -6% after it cut its full-year sales guidance. Limiting losses, technology stocks advanced, with BE Semiconductor (BESI.NA) climbing over +8% after Applied Materials increased its stake in the company to about 20%. Data released on Tuesday showed that French consumer confidence plunged in October to its lowest level since June 2013, as nationwide protests and a government bond selloff fueled concerns about the sustainability of the country’s public finances. Separately, the European Central Bank’s quarterly survey showed that Eurozone banks tightened lending conditions for businesses in the three months through September, while demand for credit weakened. “Heightened risk perceptions and banks’ reduced risk tolerance remained the main drivers of tighter credit standards, with some banks reporting increasing pressure as a result of geopolitical uncertainty and energy developments,” the ECB said. Meanwhile, Eurozone government bond yields were mixed on Tuesday, with French yields rising after a sharp decline in the previous session and German yields falling. In other corporate news, Novartis (NOVN.Z.IX) rose over +1% after the Swiss drugmaker raised its full-year core operating income guidance.
France’s Consumer Confidence data was released today.
The French October Consumer Confidence arrived at 80, weaker than expectations of 85.
Asian stock markets today closed mixed. China’s Shanghai Composite Index ($CHSC) closed down -1.33%, and Japan’s Nikkei 225 Stock Index ($NKY) closed up +1.73%.
China’s Shanghai Composite Index gave up earlier gains and closed lower today as technology stocks resumed their slide, with solid industrial profits data failing to boost sentiment. Semiconductor and other AI-related stocks cratered on Tuesday, missing out on the Anthropic-fueled rally among their regional peers. The benchmark index closed at its lowest level since August 2025. Data released on Tuesday showed that profits at Chinese industrial companies grew at the fastest pace in three months in September, driven by strong gains in electronics and high-tech manufacturing tied to AI and digital-infrastructure spending. Industrial profits climbed 14.4% from a year earlier last month, accelerating from a 4.2% increase in August, according to the National Bureau of Statistics. Meanwhile, China’s central bank said on Monday it had decided to set up a swap facility to provide emergency liquidity to non-bank financial institutions facing large-scale redemptions. “The establishment of such facilities to address large redemptions at non-bank financial institutions could keep short-term liquidity conditions accommodative,” according to Huajin Securities analysts. Investor attention this week is on the communique from China’s ongoing fifth plenum, a closed-door gathering of the Chinese Communist Party’s Central Committee. Market participants will also closely watch China’s PMI gauges for October. Economists expect the manufacturing PMI to hold steady at September’s level, staying in expansion territory, while growth in the non-manufacturing sector is projected to pick up, supported by spending during the National Day holiday.
Japan’s Nikkei 225 Stock Index closed higher today, snapping a three-session losing streak as Anthropic’s IPO filing revived optimism about the AI trade. Chip and other AI-related stocks rallied on Tuesday. Chip-testing equipment maker Advantest jumped nearly +9%, while tech investor SoftBank Group climbed more than +4%, providing the biggest boost to the Nikkei. Gains in bank and mining stocks also supported the benchmark. Data released on Tuesday showed that the Bank of Japan’s measure of underlying inflation rose 3.2% in September from a year earlier, reaching its highest level in three years and remaining well above the bank’s 2% target. Separate data showed that a key gauge of Japan’s service-sector inflation accelerated in September, adding to evidence of mounting price pressures. Taken together, the data strengthened the case for policymakers to continue raising interest rates. Meanwhile, Japanese government bonds slipped on Tuesday as a rebound in AI-related stocks reduced demand for haven assets, while investors awaited key central bank meetings this week, including the Bank of Japan’s. The BOJ is widely expected to keep its benchmark interest rate steady at 1.25% as it assesses the impact of last month’s hike. Attention will be on the BOJ’s tone and messaging, with most economists anticipating another increase as early as December. “Based on the BOJ’s recent communications, while there has been no change in its overall stance of continuing rate hikes, it has suggested that the next move is more likely to come at the December meeting,” said JPMorgan economist Ayako Fujita. Ahead of the BOJ’s decision, investors will closely watch Japan’s September industrial production and retail sales figures, along with October Tokyo core CPI. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -19.73% to 27.66.
The Japanese September Corporate Services Price Index rose +3.7% y/y, in line with expectations.
Pre-Market U.S. Stock Movers
Chip and AI infrastructure stocks edged higher in pre-market trading, extending yesterday’s gains. Micron Technology (MU) and Sandisk (SNDK) each rose more than +1%.
Celestica (CLS) jumped over +16% in pre-market trading after the data center infrastructure company posted upbeat Q3 results and raised its full-year guidance.
SpaceX (SPCX) gained more than +1% in pre-market trading after BofA added the stock to its “US 1 List.”
Whirlpool (WHR) slumped more than -8% in pre-market trading after the household appliance maker reported an unexpected Q3 loss and cut its full-year guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - October 27th
Visa Inc. (V), The Coca-Cola Company (KO), Seagate Technology Holdings (STX), The Boeing Company (BA), S&P Global (SPGI), Corning (GLW), HCA Healthcare (HCA), Waste Management (WM), Freeport-McMoRan (FCX), Johnson Controls International (JCI), American Tower (AMT), United Parcel Service (UPS), Robinhood Markets (HOOD), The Sherwin-Williams Company (SHW), Ecolab (ECL), Hilton Worldwide Holdings (HLT), Illinois Tool Works (ITW), Royal Caribbean Cruises (RCL), NXP Semiconductors (NXPI), ONEOK (OKE), PACCAR (PCAR), Baker Hughes Company (BKR), Teradyne (TER), PayPal Holdings (PYPL), IQVIA Holdings (IQV), Ventas (VTR), Arch Capital Group (ACGL), EQT Corporation (EQT), Centene (CNC), Extra Space Storage (EXR), CenterPoint Energy (CNP), FirstEnergy (FE), F5, Inc. (FFIV), Xylem (XYL), LPL Financial Holdings (LPLA), PPG Industries (PPG), Hubbell (HUBB), CMS Energy (CMS), Expand Energy (EXE), SoFi Technologies (SOFI), Essex Property Trust (ESS), Logitech International (LOGI), TransUnion (TRU), RenaissanceRe Holdings (RNR), W. P. Carey (WPC), Lincoln Electric Holdings (LECO), Manhattan Associates (MANH), CoStar Group (CSGP), Ares Capital (ARCC), Invesco (IVZ), Range Resources (RRC), Watsco (WSO.B), Innio (INIO), Watsco (WSO), Applied Industrial Technologies (AIT), BXP, Inc. (BXP), Universal Health Services (UHS), Crane Company (CR), The Ensign Group (ENSG), UMB Financial (UMBF), Repligen (RGEN), Pentair (PNR), Central Bancompany (CBC), Zurn Elkay Water Solutions (ZWS), Smithfield Foods (SFD), NOV Inc. (NOV), STAG Industrial (STAG), Armstrong World Industries (AWI), Commvault Systems (CVLT), Chemed (CHE), ExlService Holdings (EXLS), Galaxy Digital (GLXY), Sensata Technologies Holding (ST), Caesars Entertainment (CZR), Rush Enterprises (RUSHB), Landstar System (LSTR), Kiniksa Pharmaceuticals International (KNSA), The Cheesecake Factory (CAKE), Rush Enterprises (RUSHA), Herc Holdings (HRI), Travel + Leisure Co. (TNL), Enphase Energy (ENPH), Millrose Properties (MRP), Itron (ITRI), Renasant (RNST), Mirion Technologies (MIR), Intapp (INTA), First Financial Bancorp. (FFBC), Highwoods Properties (HIW), Slide Insurance Holdings (SLDE), Community Financial System (CBU), AllianceBernstein Holding (AB), Seacoast Banking Corporation of Florida (SBCF), Polaris (PII), Asbury Automotive Group (ABG), Banc of California (BANC), NBT Bancorp (NBTB), Artisan Partners Asset Management (APAM), Trustmark (TRMK), First Busey (BUSE), Euronet Worldwide (EEFT), The Bank of N.T. Butterfield & Son (NTB), InvenTrust Properties (IVT), Rogers (ROG), Ultra Clean Holdings (UCTT), First Commonwealth Financial (FCF), Monarch Casino & Resort (MCRI), National Bank Holdings (NBHC), Werner Enterprises (WERN), American Assets Trust (AAT), OceanFirst Financial (OCFC), CTS Corporation (CTS), Esquire Financial Holdings (ESQ), Precision Drilling (PDS), Nabors Industries (NBR), Beta Bionics (BBNX), BigBear.ai Holdings (BBAI).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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