Oct 21 (Reuters) - U.S. stock index futures were little changed on Tuesday, pausing after Wall Street's strong rally in the previous session, as investors assessed a wave of quarterly earnings from major corporations and awaited updates on U.S.-China trade talks.
All three major indexes had closed with gains of more than 1% on Monday, marking their best day in over a week, fueled by AI-driven optimism, upbeat earnings expectations and easing concerns over regional bank credit quality.
Markets will face a fresh litmus test with heavyweights, including Tesla, IBM (IBM.N), opens new tab, Procter & Gamble (PG.N), opens new tab, Intel (INTC.O), and Ford (F.N), opens new tab, set to report results this week.
At 07:17 a.m., Dow E-minis were up 14 points, or 0.03%, Nasdaq 100 E-minis were down 4.5 points, or 0.02%, and S&P 500 E-minis were up 1.75 points, or 0.03%.
Futures tied to the small-cap Russell 2000 also edged lower. The index (.RUT), had jumped nearly 2% in the previous session, as markets priced in an interest rate cut from the Federal Reserve in October.
Health insurers gained in premarket trading after Elevance (ELV.N), beat estimates for third-quarter profit. UnitedHealth (UNH.N), and Humana (HUM.N), were up 1.9% and 1.1%, respectively.
Regional bank earnings are also in focus to get a closer read on the sector's health after fears of systemic stress sparked a selloff last week.
But with markets hovering near record highs, investors will not just watch earnings beats but also margin resilience and forward guidance, especially amid trade tensions and lingering inflation concerns.
"It's hard to imagine that markets were in panic mode only four days ago," said Russ Mould, investment director at AJ Bell. "It's like all the troubles faded away over the weekend, and investors are back in risk-on mode."
Sentiment got a boost after White House economic adviser Kevin Hassett said on Monday the U.S. government shutdown was likely to end this week.
U.S. President Donald Trump also struck a positive tone on trade, saying he expects to reach a "fair deal" with Chinese President Xi Jinping, while downplaying tensions over Taiwan.
Investors will closely monitor Trump's upcoming meeting with Xi on the sidelines of next week's economic summit in South Korea.
Among other stocks, Fluor (FLR.N), jumped 5.8% in premarket trading, after reports said activist investor Starboard Value has taken a nearly 5% stake in the construction firm.
GE Aerospace (GE.N), added 1.3% after the company raised its 2025 profit forecast.
General Motors (GM.N), gained 9.2% after lifting its forecast for the year on an improved tariff outlook.
Coca-Cola (KO.N), rose 2.4% as the company beat third-quarter expectations on steady demand for sodas.
Northrop Grumman (NOC.N), slipped 2.7% after the defense contractor lowered full-year sales forecast.
Reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru; Editing by Shilpi Majumdar
