After taking a breather on Monday, U.S. stock futures decided Tuesday morning was a good time to get back on the horse. All major benchmark index futures traded higher in early action, suggesting investors were ready to shake off the previous session's decline.

Monday had brought an end to a solid five-day winning streak as December kicked off on a softer note. But that's markets for you—even good runs need a pause now and then.

On the macro front, the U.S. and UK struck a notable trade agreement, with America agreeing to eliminate tariffs on British pharmaceutical products. The deal also includes a commitment from the U.S. not to challenge UK pharmaceutical pricing practices in any sector investigations for the rest of President Donald Trump's term. It's the kind of deal that doesn't make headlines everywhere but matters quite a bit to the companies involved.

Treasury yields held relatively steady, with the 10-year bond yielding 4.09% and the two-year at 3.53%. More interesting perhaps: the CME Group's FedWatch tool shows markets pricing in an 87.2% likelihood of a rate cut at the Federal Reserve's December meeting. That's a pretty strong consensus view.

Here's how futures looked in early trading:

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 indices respectively, both traded higher in premarket action. SPY gained 0.12% to $681.08, while QQQ advanced 0.19% to $618.35.

Companies Making Moves

MongoDB Crushes Expectations

MongoDB Inc. (MDB) absolutely rocketed higher, surging 22.84% after delivering third-quarter results that beat expectations and raising its fiscal 2026 guidance above what analysts were anticipating. When a company can exceed estimates and then tell investors the good times are likely to continue, Wall Street tends to respond enthusiastically.

The database software company maintains a stronger price trend across short, medium, and long-term timeframes, along with a strong growth ranking. For a tech company in the database space competing against some massive players, that kind of momentum is notable.

CrowdStrike Awaits Its Turn

CrowdStrike Holdings Inc. (CRWD) rose 1.08% ahead of its earnings report scheduled for after the closing bell. Analysts are expecting the cybersecurity firm to post quarterly earnings of 94 cents per share on revenue of $1.21 billion.

This will be an important report for CrowdStrike, which has had quite the year. The stock currently shows a weaker price trend over long and medium terms, with weakness in the short term as well. Earnings could either validate those concerns or flip the script entirely.

American Eagle Gets Ready to Report

American Eagle Outfitters Inc. (AEO) gained 1.36% as it prepared to release earnings after market close. Wall Street is looking for earnings of $0.43 per share on revenue of $1.32 billion.

The retailer maintains a stronger price trend across short, medium, and long-term periods, though quality rankings remain poor. Retail has been a mixed bag lately, so investors will be watching closely to see how American Eagle navigated the recent quarter.

Credo Technology Delivers a Blowout

Credo Technology Group Holding Ltd. (CRDO) jumped 17.84% after reporting strong second-quarter results and issuing third-quarter sales guidance that made analysts' estimates look conservative. The company sees third-quarter revenue between $335 million and $345 million, compared to the analyst estimate of just $247.04 million. That's not a beat—that's a statement.

Credo maintains a stronger price trend across all timeframes, though its value ranking is poor. For a company growing this quickly, valuation concerns often take a back seat to momentum.

Snowflake Climbs on Insider Activity

Snowflake Inc. (SNOW) rose 4.01% after Director Benoit Dageville, who also serves as Founder and Chief Architect, sold approximately $6.24 million worth of shares on November 28, 2025, at $249.65 per share.

Insider sales don't always mean much—executives have plenty of reasons to sell shares that have nothing to do with company outlook. Still, the stock moved higher, suggesting investors weren't particularly concerned. Snowflake maintains a stronger price trend across all timeframes, though its growth ranking is poor.

What Happened on Monday

Energy and information technology stocks managed to close higher on Monday, bucking the broader market trend. But utilities, industrials, and health care stocks led the downside, dragging most S&P 500 sectors into negative territory.

The previous week had been quite strong—the Dow jumped over 3%, the S&P 500 surged nearly 4%, and the Nasdaq Composite climbed more than 4%. So Monday's pullback looked more like profit-taking than panic.

Looking Ahead to 2026

LPL Research recently put out their outlook for 2026, and it's broadly optimistic. They explicitly stated they do "not expect recession in 2026, providing a supportive backdrop for equities." That's reassuring, given how much recession talk we've heard over the past couple of years.

The firm's optimism rests on several pillars. They expect that "double-digit earnings growth is poised to continue," helped along by massive capital spending on artificial intelligence infrastructure. Companies are pouring billions into AI capabilities, and that spending has to show up somewhere in earnings eventually.

The economy should also benefit from "supportive monetary policy" as the Federal Reserve continues normalizing interest rates. Add in potential fiscal stimulus from what they're calling the "One Big Beautiful Bill Act (OBBBA)," and you've got multiple tailwinds potentially working in favor of equities.

But—and there's always a but—the path forward isn't completely smooth. LPL notes that "midterm years have historically been volatile," and political shifts could trigger market drawdowns. That's just how the calendar works in election cycles.

Perhaps more importantly, "geopolitical developments will be a defining force." This is your wildcard category—the stuff that's hard to predict but could reshape supply chains, drive commodity price swings, or create sudden market dislocations.

LPL's advice for navigating all this? Keep perspective. They remind investors that "volatility is a normal part of the stock market, even in good years," and that staying focused on fundamental drivers will matter more than trying to predict every twist and turn.

What to Watch Tuesday

Fed Vice Chair for Supervision Michelle Bowman is scheduled to testify before the Committee on Financial Services in the U.S. House of Representatives at 10:00 a.m. ET. Federal Reserve officials have been particularly visible lately, and any hints about the December rate decision will get plenty of attention.

Commodities, Crypto, and Global Markets

Crude oil futures dipped slightly in early New York trading, down 0.15% to around $59.22 per barrel. Oil has been relatively subdued lately, caught between concerns about global demand and ongoing supply dynamics.

Gold fell 0.98% to hover around $4,190.38 per ounce, pulling back from its recent record high of $4,381.60 per ounce. The U.S. Dollar Index was essentially flat, up just 0.03% at 99.4410.

Bitcoin (BTC) traded 0.13% higher at $86,865.48 per coin, continuing its recent range-bound trading.

Asian markets mostly closed higher on Tuesday, with gains in Japan's Nikkei 225, Hong Kong's Hang Seng, Australia's ASX 200, and South Korea's Kospi indices. India's NIFTY 50 and China's CSI 300 were the exceptions, closing lower. European markets also traded higher in early action, suggesting a generally positive global sentiment.

All told, Tuesday was shaping up to be a rebound session after Monday's decline, with earnings reports and Fed commentary providing the main focal points for traders.