Key takeaways
- US stocks face major earnings and Fed uncertainty
- SoFi and Celestica jump after stronger financial results
- Big Tech spending returns to focus before earnings
US stock futures advanced Tuesday, October 27, as stronger corporate earnings and renewed interest in artificial intelligence helped Wall Street recover some confidence ahead of the Federal Reserve's interest-rate decision.
S&P 500 futures rose approximately 0.3%, Nasdaq 100 futures gained around 0.4%, and Dow Jones futures added roughly 0.2% in early trading, according to Reuters and Investopedia.
The gains followed Monday's advance, when the S&P 500 closed at 7,676.77, up 0.7%, while the Dow gained 0.3% to 52,361.58. The Nasdaq Composite rose 0.8% to 26,169.38.
However, investors remain cautious as the Fed begins its two-day meeting and several of America's largest technology companies prepare to report earnings.
SoFi, Celestica and UPS Lead Earnings-Driven Market Moves
SoFi Technologies attracted attention after reporting a 44% increase in quarterly revenue to approximately $1.4 billion and net income of $241 million.
The fintech added a record 1.2 million members and raised its 2026 revenue outlook to $5.04 billion. Shares gained around 5% in early premarket trading, despite remaining nearly 45% lower year-to-date through Monday.
The results contrast with an earlier SoFi selloff, when investors reacted negatively despite improving operating performance.
Celestica provided another boost to the AI sector after reporting $5.83 billion in quarterly revenue, up 83% year over year. The electronics manufacturer also issued an ambitious $40 billion revenue forecast for 2027, sending shares sharply higher before the opening bell.
UPS advanced after beating quarterly earnings expectations and raising its annual revenue outlook to approximately $92.6 billion.
Meanwhile, Boeing reported $24.2 billion in revenue but missed adjusted earnings estimates as its commercial-airplane division recorded a $697 million operating loss.
PayPal offered a contrasting picture. The payments company raised its profit forecast, but its revenue miss pressured shares, highlighting the importance of sales growth alongside profitability.
Its mixed results follow earlier PayPal earnings, when stronger transaction volumes supported investor sentiment.
Nvidia and Big Tech Face Another AI Spending Test
Artificial intelligence remains one of the market's biggest drivers.
Nvidia announced plans to invest $3 billion in Meta as the companies expand their partnership around Muse AI and next-generation computing infrastructure.
However, the investment also raises questions about financial relationships between AI equipment suppliers and their customers.
Coinpaper previously reported how Amazon's AI spending has pressured free cash flow despite strong AWS demand.
The broader sector continues facing scrutiny over expensive data centers, chip purchases and infrastructure financing.
Microsoft is also offering voluntary buyouts to approximately 60,000 eligible employees as it prepares to spend around $175 billion this year. Its workforce restructuring illustrates the pressure to control costs while accelerating AI investment.
Fed Decision Could Determine the Next Stock Market Move
The Federal Reserve will announce its monetary policy decision Wednesday, October 28, at 2 p.m. Eastern Time.
Investors generally expect policymakers to leave interest rates unchanged at 3.75%–4.00%, although persistent inflation and elevated oil prices have complicated expectations for future rate moves.
Brent crude retreated Tuesday but remained elevated as diplomatic discussions concerning Iran offered some hope of easing supply disruptions.
Higher borrowing costs remain particularly important for technology companies financing expensive infrastructure.
That risk was visible in Monday's stock market recovery, when chip shares rebounded but concerns over AI-related debt persisted.
The upcoming reports will test whether strong cloud revenue can justify enormous investment commitments, particularly after recent AI financing concerns unsettled technology stocks.
