U.S. stock index futures rose slightly on Tuesday, extending Wall Street’s recovery as earnings season continues to unfold. As of 05:45 ET (09:45 GMT), Dow Jones futures were up 65 points (0.1%), S&P 500 futures gained 10 points (0.1%), and Nasdaq 100 futures added 38 points (0.2%).

Monday’s gains helped reverse last week’s steep losses, which were triggered by renewed trade tensions and soft labor market data. Investor sentiment has since rebounded, supported by expectations of a Federal Reserve rate cut in September. According to CME’s FedWatch Tool, markets are now pricing in a 90% probability of a rate cut, up from 63% a week ago.

Geopolitical concerns remain, with President Trump threatening to sharply raise tariffs on Indian goods over the country’s purchases of Russian oil. However, hopes for monetary easing have outweighed trade jitters for now.

On the data front, attention turns to the ISM non-manufacturing PMI, expected to rise to 51.5 in July from 50.8. A reading above 50 signals expansion, and the services sector—comprising over two-thirds of the U.S. economy—remains a key barometer of economic health.

Earnings in Focus: Palantir Jumps, AMD and Caterpillar Ahead

Corporate earnings have also supported the rebound. Palantir Technologies (PLTR) jumped in premarket trading after reporting over $1 billion in quarterly revenue for the first time, fueled by AI tailwinds and growing defense sector demand.

Later today, results are due from Advanced Micro Devices (AMD), Rivian Automotive (RIVN), and Caterpillar (CAT), while Disney (DIS), McDonald’s (MCD), and Uber (UBER) report on Wednesday. In contrast, Hims & Hers Health (HIMS) tumbled after missing revenue expectations.

Oil Slips Further as OPEC+ Moves to Raise Output

Crude prices continued to fall amid concerns over supply and demand imbalances. Brent crude declined 0.8% to $68.18 per barrel, while WTI dropped 1% to $65.64. Both benchmarks have fallen for four straight sessions, hitting their lowest levels in a week.

The declines follow OPEC+’s decision to increase output by 547,000 barrels per day starting in September—effectively reversing part of the group’s prior 2.5 million bpd production cut, which represented around 2.4% of global demand.