S&P 500: Tesla, Intel, and Buffett-Backed Constellation Surge in Pre-Market

Stock Futures Rise as Investors Eye Fed Minutes and Trade Developments

U.S. stock futures climbed early Tuesday, kicking off a shortened trading week as traders monitored Federal Reserve policy signals and trade developments. Dow Jones Industrial Average futures edged up 27 points, or 0.1%, while S&P 500 and Nasdaq-100 futures gained 0.3% and 0.4%, respectively. Investors remained focused on central bank policy and potential trade implications from newly announced tariffs.

Will the Fed Minutes Offer Clarity on Rate Cuts?

Traders are closely watching the Federal Reserve’s January meeting minutes, set for release Wednesday, for insights into policymakers’ views on inflation and rate cuts. The Fed kept interest rates steady between 4.25% and 4.5% last month, and recent comments from officials have reinforced a cautious approach.

Fed Governor Christopher Waller stated that new tariffs announced by President Donald Trump would likely have only a modest effect on prices. Meanwhile, Philadelphia Fed President Patrick Harker indicated no urgency to adjust rates. Hawkish remarks from Fed Chair Jerome Powell last week, alongside inflation data, have added to uncertainty over the timing of rate cuts.

Market pricing reflects expectations for at least one 25-basis-point rate cut by December, with a 56% chance of an additional cut, according to LSEG data. Weaker-than-expected retail sales data last week pulled Treasury yields lower, supporting expectations that the Fed will ease policy later in the year.

How Are Stocks and Sectors Reacting?

Most mega-cap tech and growth stocks advanced in premarket trading. Tesla led with a 0.9% gain,

while Intel surged 6.1% following reports that rivals Taiwan Semiconductor Manufacturing Co. and Broadcom were exploring deals that could potentially break up the chipmaker.

Constellation Brands jumped 8.4% after Warren Buffett’s Berkshire Hathaway disclosed a new investment in the beverage company. On the downside, Hims & Hers Health slipped 2% after Morgan Stanley downgraded the stock.

Earnings season is winding down, with more than 380 S&P 500 companies having reported results. Walmart’s upcoming report will be closely watched for insights into consumer spending. Occidental Petroleum and Arista Networks are also set to release earnings Tuesday.

Can Stocks Break Out to New Highs?

Major indexes are coming off a positive week, with the Dow rising 0.6%, the S&P 500 gaining 1.5%, and the Nasdaq climbing 2.6%. Despite volatility, all three remain near recent highs. The Dow and Nasdaq are about 1% below record levels, while the S&P 500 is just 0.2% away from its milestone.

Investor sentiment has been supported by expectations for eventual rate cuts, earnings strength, and stock buybacks resuming. According to Mark Hackett, chief market strategist at Nationwide, improving earnings expectations could push the S&P 500 beyond its recent trading range.

The focus now shifts to Fed policy signals and global trade developments. Any surprises in the FOMC minutes or economic data could dictate near-term market direction.

More Information in our Economic Calendar.