U.S. Stock Futures Advance

Good morning.

U.S. stock index futures advanced on Tuesday as optimism around a keenly awaited earnings report from Nvidia kept megacap growth stocks on a strong footing, while a slide in the 10-year government bond yield also boosted equities. Shares of Nvidia climbed 1.7% in premarket trading on Tuesday after adding nearly 9% in the previous session after KeyBanc raised its price target on the stock to $620 from $550.

Focus will be on whether Nvidia’s forecast could meet the high expectations set by market participants following a blockbuster report last quarter that fueled a blistering rally in stocks driven by a frenzy around artificial intelligence.

S&P Global Ratings lowered the credit ratings of five regional U.S. banks on Tuesday, citing tough operating conditions. Comerica and KeyCorp had their credit ratings downgraded from ‘BBB+’ to ‘BBB’ due to significant deposit outflows and higher for longer rates. “Amid higher for longer interest rates, we expect further asset quality deterioration. Banks with material exposures to commercial real estate, especially in office loans, could see some of the greatest strains on asset quality,” S&P warned.

In other news, SoftBank Group Corp.’s semiconductor unit Arm filed for a Nasdaq listing that is anticipated to be the biggest of the year.

On the earnings front, notable companies like Lowe’s, Dick’s Sporting Goods, Baidu, Medtronic, and Toll Brothers are set to report their quarterly figures today.

In economic news, markets will be focused on U.S. Existing Home Sales data. Economists, on average, forecast that July Existing Home Sales will stand at 4.15M, compared to the previous value of 4.16M.

WTI crude futures steadied around $80 per barrel. Gold held below $1,900 an ounce while United States 10-Year rates are at 4.318%, down -0.55%.

Have a great day.