S&P 500: US Stocks Bounce After Sell-Off, Lockheed and GE Earnings Support Gains

Stock Futures Rebound as Traders Eye Fed Signals and Earnings Strength

Stock futures climbed early Tuesday as traders sought to recover from Monday’s sharp sell-off, which followed renewed political pressure on the Federal Reserve. Futures for the Dow Jones Industrial Average rose 312 points, or 0.8%, while S&P 500 and Nasdaq 100 futures gained by the same margin.

The move came after the Dow dropped more than 970 points Monday, with the S&P 500 and Nasdaq Composite each losing over 2%. Sentiment turned fragile following Donald Trump’s latest attack on Fed Chair Jerome Powell, whom he labeled a “major loser” and hinted he might attempt to remove—comments that rattled investor confidence in the central bank’s independence.

Is Technical Support and Trade Talk Behind the Bounce?

Analysts at Vital Knowledge pointed to three factors behind the rebound: the S&P 500 holding key technical support near the 5100 level, optimism about a potential U.S.-India trade agreement, and signs of congressional support for Powell and Fed autonomy.

Markets remain on edge, with the major indexes still down more than 9% since Trump’s early April tariff threats. Continued policy uncertainty on interest rates and trade remains a top concern.

Can Lockheed and Peloton Keep the Rally Alive?

Earnings helped lift sentiment in early trading. Lockheed Martin jumped 3.5% after reporting stronger-than-expected Q1 results. EPS came in at $7.28, well ahead of the $6.34 consensus, while revenue hit $17.96 billion, topping forecasts.

Peloton soared 15.2% premarket as strong Tread demand fueled a 26.9% revenue jump, with product sales doubling quarter-over-quarter. The company raised its 2025 EBITDA and free cash flow targets, signaling a more confident profit path after recent struggles.

GE Aerospace also advanced, rising 0.9% after beating on revenue and profit. The company affirmed its full-year guidance even after factoring in tariff impacts, citing strength in its commercial engine division.

Why Are Verizon and Halliburton Sliding on Results?

Verizon dropped 4% as it reported a net loss of 289,000 postpaid subscribers, worse than expected. While management pointed to improving April trends and affirmed guidance, consumer segment weakness weighed on sentiment.

Halliburton fell 5.8% after Q1 revenue declined year-over-year despite beating analyst estimates. EPS met expectations at $0.60, but the weaker sales print pressured the stock.

What Should Traders Watch This Afternoon?

Tesla will report earnings after the market close, with investor focus on margins, pricing power, and AI developments. The report could sway tech sentiment heading into midweek.

Fed speeches throughout the day and Richmond Fed manufacturing data will offer additional rate clues. With political risk and policy uncertainty still clouding the macro picture, markets remain sensitive to headlines.

More Information in our Economic Calendar.