US Futures Rise as Strong Data, Earnings Offset Tariff Focus Ahead of Fed Decision – Europe Market Wrap

US equity futures gained as a deluge of data is seen reinforcing the picture of a buoyant economy, diverting attention from trade negotiations.

S&P 500 contacts advanced 0.3% Tuesday after the index inched to its latest record high. A gauge of the dollar was little changed after climbing to its strongest level in more than five weeks on speculation a slew of readings on the economy will show the tariff impact is contained, for now.

Investor attention is turning from recent US tariff deals with the European Union and Japan to key indicators spanning jobs and inflation to broader economic activity. The Federal Reserve is forecast to keep interest rates unchanged Wednesday, while investors will be tracking earnings from four megacap tech companies this week.

Traders continue to lean toward a quarter-point reduction at the Fed’s meeting in mid-September, with around 100 basis points of easing seen over the next 12 months. Pressure from the White House for immediate rate cuts has the potential to sow dissent as Chair Jerome Powell and his colleagues begin a two-day meeting.

US consumer confidence is expected to have shown an improvement in data due Tuesday, with JOLTS job openings statistics also on deck. Growth and inflation numbers out Wednesday are seen offering further signs of economic resilience.

On the earnings front, Magnificent Seven members Apple, Amazon, Microsoft Corp. and Meta Platforms Inc. are all due to report numbers in the coming days. Robust corporate earnings have bolstered investor confidence in US stocks, as companies head for their highest share of beats since the second quarter of 2021.

Also in focus will be the Treasury Department’s update of debt-sales plans, due Wednesday. Traders expect issuance of Treasury bills to expand as the government tackles the financing of large deficits over the next quarter and into 2026.