1. Federal Reserve kicks off two-day meeting
The Fed kicks off its two-day meeting later in the day, with a monetary policy statement due on Wednesday, as market players look for any fresh indications on when the central bank may start to hike interest rates.
Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.
2. Chinese stocks continue roller coaster ride
The Shanghai Composite took investors on a roller coaster ride on Tuesday, plunging nearly 5% after the open, only to rebound into positive territory ahead of the midday break, and then drop again in afternoon trade to end down 1.7%, despite expectations for more government support.
The People's Bank of China said in a statement before the market opened Tuesday it would act to stabilize market expectations.
On Monday, the Shanghai Composite tumbled 8.5%, the biggest one-day drop since February 2007, amid reports that government buying of stocks and securities has slowed.
Equity markets in China plunged sharply earlier this month, forcing policymakers to intervene and provide measures to boost liquidity and calm investors.
3. Wall Street earnings continue
Ford Motor Company (NYSE:F), Pfizer Inc (NYSE:PFE), United Parcel Service Inc (NYSE:UPS), Reynolds American (NYSE:RAI) and JetBlue Airways Corporation (NASDAQ:JBLU) are due to report quarterly earnings ahead of Tuesday's opening bell.
After Tuesday’s close of trading, Twitter (NYSE:TWTR), Gilead Sciences (NASDAQ:GILD), Yelp Inc (NYSE:YELP) and Panera Bread (NASDAQ:PNRA) are scheduled to report.
4. U.S. data in focus
The Case-Shiller home-price index for May comes out at 9:00AM, followed by the Markit flash services purchasing-managers index for July at 9:45AM.
At 10:00AM, the U.S. is to release a report on consumer confidence for July, which is expected to show a drop of 1.4 points to 100.0 from 101.4 in June.
Also at 10:00AM, the Richmond Fed business activity survey for July comes out.
5. Greece, creditors begin talks to secure bailout deal
Formal talks between Greece and its international creditors on a new €86 billion bailout package got underway in Athens.
A new agreement must be reached before August 20, when Greece must repay more than €3 billion to the European Central Bank.