US stock futures moved unevenly higher Tuesday morning as optimism in technology shares countered concerns tied to trade policies and a sharp decline in UnitedHealth Group. S&P 500 futures rose 0.3%, while Nasdaq 100 futures climbed 0.7%. Dow Jones Industrial Average futures dropped roughly 0.3%.
Trade developments captured market attention. The European Union announced it had clinched a free trade agreement with India after nearly two decades of negotiations. European Commission President Ursula von der Leyen stated on X, "We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit." Indian Prime Minister Narendra Modi said the agreement would strengthen India's manufacturing and services sectors.
This move is viewed as a response to President Trump's tariff policies, including a threat late Monday to raise levies on South Korean auto imports to 25% from 15%.
On Wall Street, the S&P 500 approached potential record highs as positive news from memory chipmakers boosted tech sentiment ahead of major earnings reports. Meta, Microsoft, and Tesla are scheduled to report results Wednesday, followed by Apple on Thursday.
The Dow underperformed, pressured by UnitedHealth's stock, which slumped over 10% before the bell. Shares of major insurers fell after the Trump administration proposed keeping Medicare payment rates roughly steady for next year, below Wall Street's expected increase.
UnitedHealth is set to report quarterly results Tuesday. General Motors posted a fourth-quarter earnings beat before the bell, raising its dividend and announcing a $6 billion share buyback plan. Reports from American Airlines and Boeing are also due.
The Federal Reserve begins its two-day meeting Tuesday, leading to its first policy decision of the year. It is widely expected to hold the benchmark interest rate steady Wednesday, with markets watching for signals on future rate cuts. Updated consumer confidence and home price data due later will provide economic context.
Elsewhere, a potential government shutdown loomed as Senate Democrats attempted to block a bill funding the Department of Homeland Security. This political pushback followed the fatal shooting of American citizen Alex Pretti by federal agents in Minneapolis.
In premarket trading, several stocks saw notable movement. Cloudflare stock rose 9% following the launch of its new AI assistant called Clawdbot. Salesforce stock edged 2% higher after news the Army signed a $5.6 billion, 10-year contract with the company. Intel stock rose 3% after falling last week post-earnings.
Fat Brands Inc. stock sank 40% after filing for bankruptcy. Micron Technology shares popped after the company said it plans to invest $24 billion in a new NAND facility in Singapore.
Gold held above $5,000 for a second day. Deutsche Bank analyst Michael Hsueh said in a note, "Gold's continued rise reflects investment motives which may be persistent: higher reserve allocations, and investors raising allocations to non-dollar and real assets. We think USD 6,000/oz is achievable with a weaker dollar this year."
Extended trading Monday saw health insurer stocks plummet after a Centers for Medicare & Medicaid Services report indicated payment rates would increase only 0.09% on average for 2027, well below expectations. Humana stock fell 12.5%, CVS Health sank over 10%, and UnitedHealth shares dropped 8.6%.