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Futures: Dow flat, S&P 500 up 0.26%, Nasdaq 0.39%

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Caterpillar's ( CAT ) profit falls on weak equipment demand,

tariff hit

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Palantir ( PLTR ) jumps as soaring AI demand powers forecast

upgrade

(Updates with prices)

By Nikhil Sharma and Pranav Kashyap

Aug 5 (Reuters) -

Wall Street futures inched higher on Tuesday, supported by

optimism over the Federal Reserve's rate cuts, while investors

turned their attention to a fresh batch of corporate earnings.

At 6:51 a.m. ET, S&P 500 E-minis were up 16.75

points, or 0.26%, Nasdaq 100 E-minis were up 90 points,

or 0.39%, and Dow E-minis were down 1 point at 44,302.

Wall Street roared back to life on Monday, as it posted

its strongest gains in more than two months after recouping

losses from a selloff on Friday, when disappointing July jobs

numbers and sharp revisions to prior data fueled expectations

for a September Fed rate cut.

According to CME Group's FedWatch tool, investors have

rapidly shifted gears - now pegging the odds of a September cut

at 90%, up from just 63.3% last week.

Markets are now betting on at least two quarter-point

cuts before the end of the year.

Earnings from major names on Tuesday include Advanced Micro

Devices ( AMD ), Snap and Rivian.

Pfizer ( PFE ) gained 3% in premarket trading after raising

annual profit forecast, while Palantir Technologies ( PLTR )

rose 6.1% as it boosted its annual revenue forecast.

Online telehealth company Hims and Hers Health ( HIMS )

crashed 13% after missing Street estimates for second-quarter

revenue, as subscribers for its compounded versions of

weight-loss drugs declined.

Meanwhile, President Donald Trump's decision to fire the

head of the Bureau of Labor Statistics, responsible for past

jobs data, stoked investors' fears about the integrity of

economic data.

Federal Reserve Governor Adriana Kugler's surprise

resignation on Friday also opened avenues for Trump to shake up

the Fed's leadership earlier than expected. The U.S. president

has repeatedly criticized Fed Chair Jerome Powell for not

cutting interest rates.

"U.S. growth resilience has been relatively remarkable so

far, even if the U.S. job market is raising doubts about what's

coming next," said Amelie Derambure, senior multi-asset

portfolio manager at Amundi.

The final July reading of S&P Global's Purchasing Managers'

Index is scheduled for release at 9:45 a.m. ET, followed by the

Institute for Supply Management's non-manufacturing PMI at 10:00

a.m. ET.

Investors also weighed the impact of U.S. tariffs on global

economies and corporate earnings. Trump on Monday threatened to

raise import tariffs on goods from India over its Russian oil

purchases, while New Delhi called the attack "unjustified" and

vowed to protect its economic interests.

Markets were also still watching if Trump will decide to

extend a trade truce with China that expires on August 12, or

potentially let tariffs shoot back up to triple-digits.

Caterpillar ( CAT ) fell 4% after reporting a lower

second-quarter profit, hurt by sluggish demand for construction

equipment and higher costs tied to U.S. tariffs.

DuPont ( DD ) gained 6.7% after

forecasting

upbeat third-quarter results on robust electronics,

healthcare demand.