The Market Brief
U.S. futures marched higher during early trading on Wednesday after the U.S. reached trade deals with key partners, as traders’ attention shifts to U.S. tech giants' earnings.
Impact Snapshot
Key Earnings (After close): TSLA 0.00%↑ GOOGL 0.00%↑ IBM 0.00%↑
Macro Viewpoint
The rally in global stocks gained new momentum following a trade agreement between the US and Japan, helping ease worries over the ongoing tariff tensions. With that concern dialed down, investors are now shifting focus to upcoming earnings reports from major US tech companies.
Markets have made a strong comeback since their April dip, largely driven by hopes that countries will reach deals with the US before the August 1 deadline—potentially sidestepping major hits to corporate profits and the broader global economy.
10% of SPX market cap reported last week, with an additional 23% reporting this week. As of Friday’s close, earnings were largely clearing the low bar established into the quarter: 60% of companies reporting have beaten EPS while only 11% of companies have missed.
Among the companies reporting Wednesday are Tesla Inc. and Alphabet Inc.
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