Market Movers: Earnings Drive Gains Amid Fed Meeting and Legislative Tensions

S&P 500 and Nasdaq futures rose with mega-cap earnings on investor radar, while health insurers faced declines due to a lackluster Medicare Advantage payment proposal. UnitedHealth's shares dropped significantly, impacting the Dow. The AI trade remains a key focus, with anticipated earnings from tech giants like Meta and Microsoft.

On Tuesday, S&P 500 and Nasdaq futures saw a rise, fueled by anticipation of mega-cap earnings reports, while health insurers faced a setback following an unsatisfactory Medicare Advantage payment proposal from the Trump administration. A substantial 15% drop in UnitedHealth shares put pressure on Dow futures.

This proposal overshadowed UnitedHealth's optimistic 2026 profit forecast, which had initially exceeded analyst predictions. Health industry peers Humana and CVS also suffered significant stock losses. Meanwhile, United Parcel Service shares saw a 3.6% increase following a positive revenue outlook for 2026, with General Motors and RTX reporting encouraging quarterly results.

The market remains attentive to earnings reports from corporate giants, such as Boeing, which are expected to influence future trends. Additionally, the Federal Reserve's policy meeting piques investor interest, with expectations for a steady interest rate. The looming U.S. government shutdown deadline adds to the uncertain legislative climate affecting market sentiments.

(With inputs from agencies.)