US STOCKS-Wall Street set for steady open on rate cut hopes; earnings in spotlight

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window) *

Futures up: Dow 0.09, S&P 500 0.17%, Nasdaq 0.28% *

Caterpillar profit falls on weak equipment demand, tariff hit *

Palantir jumps as soaring AI demand powers forecast upgrade (Updates with prices, analyst comment before the opening bell)

By Nikhil Sharma and Pranav Kashyap Aug 5 (Reuters) -

Wall Street futures pointed to a higher open on Tuesday, supported by ongoing optimism over potential Federal Reserve interest rate cuts, while investors assessed a fresh batch of corporate earnings. At 8:28 a.m. ET, S&P 500 E-minis were up 10.75 points, or 0.17%, Nasdaq 100 E-minis were up 65.75 points, or 0.28%, and Dow E-minis were up 39 points, or 0.09%.

Wall Street roared back to life on Monday by posting its best session since May 27 and recouping losses from a selloff on Friday, when disappointing July jobs data and sharp downward revisions to prior months fueled expectations of a Fed rate cut in September. According to CME Group's FedWatch tool, the odds for a September rate cut now stand at 88.2%, compared with 63.3% a week earlier. Market participants expect at least two quarter-point cuts by the end of the year.

Earnings from major names on Tuesday include Advanced Micro Devices, Snap and Rivian. Pfizer gained 2.4% in premarket trading after raising its annual profit forecast, while Palantir Technologies rose 7.1% as it boosted its annual revenue forecast.

Online telehealth company Hims and Hers Health crashed 10.2% after missing Street estimates for second-quarter revenue, as subscribers for its compounded versions of weight-loss drugs declined. Meanwhile, President Donald Trump's decision to fire the head of the Bureau of Labor Statistics, responsible for past jobs data, stoked investors' fears about the integrity of economic data.

Federal Reserve Governor Adriana Kugler's surprise resignation on Friday also opened avenues for Trump to shake up the Fed's leadership earlier than expected. The U.S. president has repeatedly criticized Fed Chair Jerome Powell for not cutting interest rates. Trump on Tuesday said he would soon announce decisions on an interim replacement for Fed Governor Kugler, as well as his pick for the next Fed chair.

"You can announce who the next chair is, but I don't think that Chair Powell will be going anywhere until the end of his term. I also don't think that whoever is announced as the new Fed chair will really be impactful," said Art Hogan, chief market strategist at B Riley Wealth. The final July reading of S&P Global's Purchasing Managers' Index is scheduled for release at 9:45 a.m. ET, followed by the Institute for Supply Management's non-manufacturing PMI at 10:00 a.m. ET.

Investors also weighed the impact of U.S. tariffs on global economies and corporate earnings. Trump on Monday threatened to raise import tariffs on goods from India over its Russian oil purchases, while New Delhi called the attack "unjustified" and vowed to protect its economic interests. Markets were also still watching if Trump will decide to extend a trade truce with China that expires on August 12, or potentially let tariffs shoot back up to triple-digits.

Caterpillar slipped 0.2% after reporting a lower second-quarter profit, hurt by sluggish demand for construction equipment and higher costs tied to U.S. tariffs. KFC parent Yum Brands slipped 2.3% after

missing estimates for second-quarter comparable sales and profit.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)