The Market Brief
U.S. futures ticked up on Monday, supported by renewed optimism around potential trade agreements between the U.S. and major global partners, as the pace of earnings season accelerates.
Macro Viewpoint
Markets were active last week, as a flurry of macroeconomic indicators suggested a possible return to a balanced and favorable economic environment in the US.
The kickoff to Q2 earnings season and several notable political developments added to the momentum. Although trade tensions had taken a backseat recently, signs of tariff-related pressures are beginning to surface in US macro data.
By the weekend, focus shifted back to US-EU trade talks amid reports that Trump is advocating for a minimum 15%-20% tariff on all goods imported from the EU.
Despite the early signs of tariff impacts on CPI and fresh warnings of escalation, strong consumer data and solid Q2 corporate results have, for now, taken precedence in the market's attention.
This week, the spotlight is firmly on Q2 earnings, with major players from the Mag7 cohort, including Alphabet and Tesla, set to report. Market reaction to last week's barrage of catalysts was relatively restrained, tempered by the ongoing earnings cycle.
So far, the Q2 earnings season is off to a strong start: among the 12% of S&P 500 companies that have announced results, 83% have posted positive EPS surprises.
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