US stock futures moved higher on Tuesday, with Nasdaq futures gaining approximately 140 points, as market participants positioned ahead of the Federal Reserve's two-day policy meeting. The advance follows a positive session on Monday, when technology shares rallied after Anthropic's IPO filing reignited enthusiasm for artificial intelligence.
S&P 500 futures climbed 0.25%, while Dow Jones Industrial Average futures added 0.29%. Nasdaq futures rose 0.46%, reflecting continued investor appetite for growth-oriented tech names. The gains suggest that the recent AI-driven rebound may have further room to run, though traders remain cautious about the Fed's outlook and geopolitical risks.
Nvidia's $3 Billion Stake in Meta
Nvidia confirmed it will invest $3 billion in Meta Platforms' equity offering, deepening their collaboration on AI infrastructure. Meta plans to expand its deployment of Nvidia's Vera Rubin systems, Vera CPUs, Spectrum-X networking, and BlueField technology. The equity offering could raise up to $37.5 billion, with an additional at-the-market program of up to $60 billion slated after Meta's new Class C shares begin trading in 2027.
This investment underscores the scale of AI capital expenditure, but it also raises questions about circular financing, as Nvidia invests in a major customer that purchases its chips. Such arrangements can inflate revenue figures without reflecting end-user demand, a concern that has drawn scrutiny from analysts.
Oil Prices Swing on Middle East Diplomacy
Crude oil futures experienced volatility as investors weighed diplomatic efforts involving Iran and regional governments against persistent supply disruption risks. Brent crude fell about 1% to near $114.67 per barrel, while West Texas Intermediate slipped to around $100.71. Earlier in the session, prices had recovered on hopes of de-escalation before retreating again.
Renewed attacks on shipping routes and threats to energy infrastructure continue to keep the oil market on edge. Any escalation could quickly push prices higher, adding to inflationary pressures that the Fed is monitoring closely.
Fed Meeting and Economic Data
The Federal Open Market Committee begins its meeting on Tuesday, with a policy decision due Wednesday at 2 p.m. ET, followed by Chair Kevin Warsh's press conference at 2:30 p.m. ET. Markets widely expect rates to remain unchanged after September's increase, but investors will scrutinize the statement and Warsh's remarks for clues about future tightening.
Tuesday's economic calendar includes durable goods orders, consumer confidence, and new-home sales, which will provide fresh data on the health of the US economy. Strong numbers could bolster the case for further rate hikes, while weak figures might reinforce expectations of a pause.
Corporate Earnings in Focus
Several major companies are reporting results on Tuesday, including Coca-Cola, Boeing, PayPal, and Visa. Coca-Cola beat third-quarter expectations and raised its full-year profit forecast, while Boeing and Visa results will offer insights into corporate performance across sectors.
Celestica also delivered strong results after Monday's close, reporting $5.83 billion in third-quarter revenue and adjusted earnings of $3.30 per share. The company raised its 2026 outlook and issued robust 2027 guidance, sending shares more than 15% higher in extended trading.
Asian Tech Stocks Rally
Asian markets advanced as AI enthusiasm lifted semiconductor shares. Japan's Nikkei 225 gained 1.73%, while South Korea's Kospi surged 3.09%. Samsung Electronics rose 4.23% and SK Hynix climbed 5.18%, reflecting strong demand for AI-related components.
The regional rally followed Monday's gains in US technology stocks after Anthropic's IPO filing. Investors will now look to earnings and the Fed's guidance to determine whether the renewed optimism around AI can sustain the broader market rebound.
This article is for informational purposes only and does not constitute financial advice.
