Stock market news today: US futures edge up in wait for earnings deluge, Fed meeting kickoff

US stocks nudged higher ahead of the bell Tuesday as investors awaited a flood of key earnings from the likes of Microsoft ( MSFT ) and the start of the Federal Reserve's rate-setting policy meeting.

Futures on the S&P 500 ( ES=F ) and the tech-heavy Nasdaq 100 ( NQ=F ) were up roughly 0.2%, on the heels of a lackluster session for the major gauges. Futures on the Dow Jones Industrial Average ( YM=F ) hovered above the flatline.

Stocks are in the midst of a potentially pivotal week featuring the Fed's decision, the July jobs report, and results from four of the "Magnificent Seven" megacaps. All will be crucial for investors wondering whether the recent stock pullback is over, as they weigh high expectations for interest-rate cuts against concerns that Big Techs have lost their mojo.

Eyes are now on Microsoft's quarterly report due after trading ends, which will set the stage for results from Apple ( AAPL ), Amazon ( AMZN ), and Meta ( META ) in the following days.

Wall Street is watching closely for any sign that massive AI investments are starting to pay off. It's especially in focus after July's volatile ride for stocks underlined the risks of the AI trade, as investors rotated out of Big Tech and into small caps.

Also on Tuesday's packed earnings docket are Starbucks ( SBUX ), Merck ( MRK ), Pfizer ( PFE ), and Procter & Gamble ( PG ), among many others. A notable theme has emerged this earnings season — a willingness by investors to support companies that post weak results but outline a turn in their business coming soon.

In the early going, Diageo ( DEO ) stock sank after the maker of Johnny Walker whisky missed annual profit forecasts as it warned low consumer confidence could stretch into next year.

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Meanwhile, the Fed will begin its July policy meeting later Tuesday, expected to bring no change in borrowing costs on Wednesday but to lay the groundwork for a rate cut in September. After encouraging June inflation data, the market debate now centers on the timing and number of cuts this year.