Dow Futures decline following weekly gains as uncertainty surrounding U.S.-China trade negotiations weighs on Wall Street’s momentum. U.S. stock futures dipped slightly on Sunday evening following weekly gains on Wall Street, as mixed signals regarding U.S.-China trade discussions maintained a cautious investor sentiment. Meanwhile, markets prepared for significant earnings reports from major technology companies such as Apple, Amazon, and Microsoft. S&P 500 Futures declined by 0.4%, settling at 5,526.75 points, whereas Nasdaq 100 Futures decreased by 0.5%, reaching 19,433.75 points as of 20:00 ET. Dow Jones Futures experienced a decline of 0.4%, settling at 40,111.0 points.
Major Wall Street indexes experienced weekly gains on Friday, fueled by Alphabet’s better-than-expected quarterly results, which ignited renewed optimism regarding artificial intelligence and further extended the recent rally in the tech sector. The S&P 500 index experienced a rise of 0.7% on Friday, while the NASDAQ Composite surged by 1.3%. In contrast, the Dow Jones Industrial Average remained relatively stable, closing largely unchanged.
Sentiment was further bolstered following media reports last week indicating that China has exempted specific U.S. imports from its retaliatory 125% tariffs. However, investors adopted a cautious stance once more as U.S. Treasury Secretary Scott Bessent on Sunday contradicted President Donald Trump’s earlier remarks, stating he was unaware of any ongoing tariff negotiations with China and uncertain if Trump had recently communicated with Chinese President Xi Jinping.
This contradicted Trump’s assertions from the previous week, in which he implied that negotiations were underway and that he had directly interacted with Xi. The Trump administration has indicated a desire to alleviate tensions in the ongoing trade war, which has already unsettled markets and heightened concerns about a global recession. Nonetheless, China’s assertion that no discussions are taking place has raised significant skepticism regarding the U.S. narrative. These conflicting signals are maintaining a state of unease among investors, who find themselves torn between aspirations for a significant advancement and apprehensions regarding escalating tensions.
Investors were closely monitoring earnings from the “magnificent seven” megacaps, including Apple Inc, Microsoft Corporation, Amazon, and Meta Platforms Inc this week. On Wednesday, Microsoft and Meta are poised to release their earnings reports, followed by Apple and Amazon, who will disclose their financial results on Thursday. Earnings from other major sectors, such as Visa, Coca-Cola Co, and Caterpillar Inc, were all scheduled for release this week. These reports are essential for assessing corporate resilience in the context of persistent tariff tensions and concerns regarding capital expenditure related to AI.