Stocks Tread Water as Investors Eye Big Tech Earnings and Rate Cut Signals

Investors are cautiously watching the performance of the S&P 500 and Nasdaq as they await key earnings reports from major technology companies and labor market data. Anticipations of an interest-rate cut by the Federal Reserve also loom large, affecting market dynamics. Microsoft and other tech giants' quarterly results are pivotal.

The S&P 500 and Nasdaq showed positive signs ahead of market opening on Tuesday, as investors awaited earnings reports from major technology companies and key labor data. The anticipation of the Federal Reserve's interest-rate cut has stirred cautious optimism among market watchers.

Microsoft, a significant player in the AI sector, is expected to release its quarterly results after market close, with other tech giants like Nvidia, Apple, and Amazon showing slight upticks. At 8:39 a.m. ET, futures indicated minor gains across indices.

Last week's market sell-off, influenced by disappointing results from Tesla and Alphabet's expenditure forecast, set high expectations for tech firms leading Wall Street's rally this year. Analysts are keen on these companies' AI investments and their potential to drive further market gains.

(With inputs from agencies.)