U.S. Stock Futures Rise Ahead of Tesla Earnings, Sentiment Remains Fragile

U.S. stock index futures climbed early Tuesday, rebounding from Monday’s sharp sell-off as investors turned their attention to upcoming earnings from electric vehicle giant Tesla.

As of 05:35 ET (09:35 GMT), Dow Jones Futures rose by 320 points, or 0.8%, S&P 500 Futures gained 50 points, or 1%, and Nasdaq 100 Futures advanced 180 points, or 1%.

The gains come after a turbulent start to the week, with all three major indexes closing significantly lower on Monday. The S&P 500 fell 2.4%, the Nasdaq Composite lost 2.6%, and the Dow Jones Industrial Average dropped 2.5%, as markets reacted to renewed political pressure on the Federal Reserve.

President Donald Trump called for “preemptive” interest rate cuts, warning of a potential economic slowdown if the Fed fails to act. Trump also intensified his criticism of Fed Chair Jerome Powell, reigniting concerns about the central bank’s independence. While Trump has previously called for Powell’s removal, the Chair’s term doesn’t end until May 2026, and any attempt to oust him before then remains uncertain.

Powell, speaking last week, warned that Trump’s tariff policies could fuel inflation and said the Fed would hold off on any policy changes until it gains more clarity on the economic impact of those measures. Monday’s sell-off extended a volatile stretch for equities, with the major indexes down over 9% since Trump unveiled his “reciprocal” tariff plans on April 2.

Tesla to Report After the Bell

Earnings season continues to unfold, with several major companies set to report results on Tuesday. Lockheed Martin (LMT), 3M (MMM), GE Aerospace (GE), and Verizon Communications (VZ) are all scheduled to release their quarterly figures.

However, the spotlight is firmly on Tesla (TSLA), which will report after market close—marking the first of the so-called «Magnificent Seven» tech giants to post earnings this season.

Expectations are low heading into the report, with analysts forecasting a challenging quarter for the EV maker. Tesla has been facing weakening demand, growing competition, and mounting controversy over CEO Elon Musk’s political affiliations. Musk’s close ties to Trump and his leadership of the White House’s so-called Department of Government Efficiency (DOGE) have sparked investor concerns.

Markets will be watching closely for any updates on the company’s plans to roll out a more affordable EV model and progress on the highly anticipated robotaxi initiative.

Fed Officials and Economic Data in Focus

Tuesday’s session will also feature speeches from several Federal Reserve officials, including Vice Chair Philip Jefferson, Minneapolis Fed President Neel Kashkari, and Fed Governor Adriana Kugler. Their comments will be closely analyzed ahead of the Fed’s next policy decision on May 7.

Investors will also digest the latest manufacturing survey from the Richmond Fed, which may provide further insight into economic momentum amid ongoing trade-related headwinds.

Oil Prices Rebound

Crude prices edged higher Tuesday, rebounding after steep losses in the previous session. Brent crude futures rose 1.5% to $67.22 a barrel, while U.S. West Texas Intermediate (WTI) gained 1.6% to $63.41 a barrel.

Monday’s decline came after news that the U.S. and Iran had agreed to begin expert-level discussions aimed at designing a framework for a potential nuclear deal—raising the possibility of increased Iranian oil exports. Still, ongoing concerns over global economic uncertainty and U.S. trade tariffs continue to cap gains.