U.S. stock-index futures were higher in early trading as markets absorbed the Federal Reserve's January meeting minutes and awaited earnings from major retail and industrial companies. The moves came after a tech-led rally in the prior session and amid rising oil prices driven by concerns about supply disruptions in the Middle East.
By 03:09 ET (08:09 GMT), the Dow futures contract had risen by 30 points, or 0.1%, S&P 500 futures had climbed by 16 points, or 0.2%, and Nasdaq 100 futures had increased by 86 points, or 0.3%. The gains in futures suggested the prior-session momentum led by technology shares could extend into the next trading day.
Tech sector continued to lead
Major U.S. averages advanced in the previous session, paced by continued strength in semiconductor names. Nvidia was a particularly influential driver after news of a multi-year deal to sell its current and next-generation chips to Facebook-owner Meta Platforms. That agreement bolstered sentiment ahead of Nvidia's closely watched earnings report next week, a release that many investors view as a litmus test for demand tied to the artificial intelligence boom.
Other technology segments also posted gains. Digital storage firms such as SanDisk and Seagate Technology climbed, reflecting their critical role in providing capacity for AI-related workloads. Software stocks moved higher too, helping to offset recent investor concerns about potential disruption risks from emerging AI models. The advances across hardware and software names helped dampen some market unease about the timing of returns on heavy investments into AI infrastructure like data centers.
Hawkish tones noted in Fed minutes
Investors closely examined the minutes from the Federal Reserve's January policy meeting for guidance on future interest-rate decisions. The minutes highlighted that "several participants" would have supported a "two-sided description" of the Federal Open Market Committee's prospective rate actions - language some interpreted as signaling the possibility of further rate hikes if inflation remained above the Fed's 2% goal.
That phrasing injected a hawkish undercurrent into markets, even as many observers continue to expect the Fed to resume cutting rates later in the year after pausing its prior rate-cutting cycle. The minutes followed the Fed's recent decision to push pause on a rate-cutting cycle which stretched back into the middle of 2025, and commentary in the minutes suggested officials remain cautious in setting policy.
Analysts at Capital Economics summarized the stance as largely "wait-and-see mode." The note also suggested that Kevin Warsh, described as a long-time rate cut advocate and President Donald Trump’s pick to succeed Jerome Powell as Fed Chair, could encounter difficulty convincing colleagues of a need for aggressive reductions in borrowing costs.
Oil edges up on Middle East activity and tighter U.S. stocks
Oil prices climbed as reports of heightened military activity in the Middle East stoked concerns over potential disruptions to flows from the region. Brent futures rose 1% to $71.04 a barrel, while U.S. West Texas Intermediate futures increased 1.1% to $65.74 a barrel. Both benchmarks had settled more than 4% higher on the previous day, marking their strongest settlements since January 30.
Media coverage of increased military and naval activity in the Persian Gulf reinforced market perceptions of supply vulnerability. At the same time, hopes that sanctions on Russian energy exports might ease dimmed after Russia-Ukraine talks failed to produce a breakthrough, removing a potential source of near-term supply relief.
Industry-sourced data added further upward pressure on prices. The American Petroleum Institute reported that U.S. crude stockpiles fell by about 609,000 barrels in the week to Feb. 13, suggesting a slightly tighter domestic supply picture. Traders were also awaiting official data from the Energy Information Administration, scheduled for release later in the day.
Walmart to provide consumer signal
Walmart is among the notable companies reporting quarterly results on the day. The big-box retailer's stock has surged this year, pushing its market capitalization above the $1 trillion mark and making it the largest company in the consumer staples sector by market value.
Because consumer spending is a central component of U.S. economic activity, Walmart's quarterly results are viewed as a potentially informative snapshot of spending patterns. The company has drawn customers with lower prices for essential items, a strategy that has supported sales among households facing inflationary pressure. Investors will watch Walmart's report for insights into consumer behavior during the important holiday shopping period and for cues ahead of earnings from other major retailers such as Home Depot and Target.
Taken together, upcoming retail results may help clarify whether the U.S. economy is exhibiting uneven dynamics - a pattern sometimes described as a two-speed or "K-shaped" recovery, where higher-income households and corporations continue to spend while lower-income consumers face more acute cost-of-living strains.
Deere report in focus for industrials
Deere and Company is also scheduled to report before the opening bell. Market participants often view Deere as a bellwether for the industrial sector given its exposure to agricultural equipment demand and related industrial activity.
In November, Deere warned that broad U.S. tariffs expected to take effect in 2026 would inflict a material financial hit on the company. Those levies are forecast to reduce Deere's pre-tax results by roughly $1.2 billion in fiscal 2026, compared with about a $600 million hit the company faced last year.
Deere's leadership has indicated that the impact might be partially offset by steady demand for forestry and smaller agricultural products, along with company cost-cutting measures. Nonetheless, the tariffs - which affect firms that rely on imported raw materials - are expected to weigh on profit margins. Separately, lower crop prices and rising production costs have led many farmers to postpone purchases of large new equipment in favor of rentals or preowned units, a shift that has implications for sales volumes and the broader industrial equipment cycle.
What investors are watching next
Market participants will continue to parse central bank communications, oil market developments, and the earnings reports from major retailers and manufacturers for signals about growth, inflation and corporate profit trends. The Fed minutes' hawkish language and signs of tighter oil supplies have combined with a tech-led equity rally to produce a nuanced market picture where investors weigh competing forces across monetary policy, geopolitics and corporate fundamentals.
Upcoming scheduled releases, including official energy inventory figures and a slate of corporate earnings, are likely to shape near-term market direction as traders update positions in response to the evolving data flow.