U.S. stock index futures suggest a modestly higher open on Tuesday, indicating that investors are likely to build on the solid gains seen in the previous trading session.

Tech shares look set to continue their upward momentum, boosted by Palantir’s (NASDAQ:PLTR) impressive quarterly earnings report. The software company’s shares jumped nearly 7% in pre-market trading after revealing a nearly 50% surge in sales during the second quarter, driven by strong demand for AI services.

DuPont (NYSE:DD) is also showing notable pre-market strength after posting better-than-expected Q2 results and raising its outlook.

In contrast, Caterpillar (NYSE:CAT) shares could face downward pressure following weaker-than-anticipated earnings for the quarter. Similarly, telehealth firm Hims & Hers Health (NYSE:HIMS) may see a decline after missing revenue estimates for Q2.

Trading volumes might be relatively light as market participants pause to digest recent volatility.

On Monday, stocks climbed sharply at the open and maintained gains throughout the session. The rally helped recover much of the losses from the previous two days. By the close, the major indexes hovered near session highs: the Nasdaq gained 403.45 points (2.0%) to finish at 21,053.58, the S&P 500 rose 91.93 points (1.5%) to 6,329.94, and the Dow added 585.06 points (1.3%) to close at 44,173.64.

This rebound came as investors snapped up shares following last week’s sell-off, which pushed the Nasdaq and S&P 500 significantly below their record highs. Friday’s drop was fueled by concerns over new tariffs announced by President Donald Trump, disappointing jobs data, and a sharp pullback in Amazon’s (NASDAQ:AMZN) stock.

Optimism that weaker employment figures could prompt the Federal Reserve to cut interest rates next month also supported buying. The CME Group’s FedWatch tool now shows a 91.9% probability of a 25-basis-point rate cut in September, up from 63.1% just a week ago.

On the economic front, the Commerce Department reported a sharp 4.8% decline in factory orders for June, reversing the revised 8.3% surge seen in May. Economists had predicted a 5% drop, following an initially reported 8.2% gain the previous month.

Networking stocks led the charge on Monday, with the NYSE Arca Networking Index soaring 10% to a record closing level. CommScope (NASDAQ:COMM) was a standout, rocketing 86.3% after announcing the sale of its connectivity and cable solutions division to Amphenol (NASDAQ:APH).

Gold miners also gained, buoyed by a rising gold price, pushing the NYSE Arca Gold Bugs Index up 4.7%. Other sectors such as software, brokerage, and computer hardware also experienced solid advances alongside most major market groups.

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