New York — Stock futures edged upward Tuesday as investors reacted to recent developments in the market, with major indices poised to continue their record-breaking trends. The S&P 500 and Nasdaq Composite, which reached new all-time highs on Monday, are being closely monitored as trading continues to unfold.

S&P 500 futures rose by 0.15%, while Nasdaq 100 futures climbed 0.24%. Futures linked to the Dow Jones Industrial Average gained 60 points, indicating a generally favorable outlook as the market entered midweek.

The rise in futures followed a modest day of trading where the S&P 500 barely finished in positive territory, marking its 15th record close of the year. Meanwhile, the Nasdaq ended the day up by 0.3% despite the Dow dipping slightly by 0.1%. Analysts noted the day’s performance reflected a cautious optimism among investors, building on the momentum generated by new trade agreements and monetary policy expectations.

A significant factor in the market’s dynamics is President Donald Trump’s recent announcement of a trade deal with the European Union, instituting a 15% tariff on various imported goods, including vehicles. Investors are increasingly focused on broader implications of U.S. trade policy, especially as negotiations with China loom. High-level talks in Stockholm between U.S. and Chinese officials have added an air of anticipation around potential outcomes ahead of an impending tariff deadline.

Inflation and tariff policies are expected to remain front-and-center this week, particularly as the Federal Reserve prepares to announce its interest rate decision following a two-day meeting. Analysts widely expect the central bank will maintain rates in the current range of 4.25% to 4.5%, a move that would aim to encourage economic stability.

In addition, this week marks a peak period for corporate earnings reports, with more than 150 S&P 500 companies set to unveil their quarterly results. This includes major players such as Meta Platforms and Microsoft on Wednesday, followed by Amazon and Apple later in the week. Early indications suggest a positive trend, with over 83% of the 170 companies that have already reported exceeding earnings expectations, according to recent data.

Market sentiment could shift dramatically based on these earnings reports. Investor Louis Navellier suggested that if results are as expected and the Fed leans dovish in its language, the stock market might see new highs by the end of the week.

In addition to earnings, economic indicators will be closely watched. The Job Openings and Labor Turnover Survey is set for release on Tuesday, followed by the ADP private payroll report on Wednesday. Weekly jobless claims will also be scrutinized, with July’s nonfarm payroll data expected on Friday. Economists predict a gain of 100,000 jobs for July, a decrease from the previous month’s figures, while the unemployment rate may tick up slightly to 4.2%.

As the week unfolds, traders will remain attentive to these economic signals and corporate earnings, which are critical to shaping the market’s trajectory.