Dow  are experiencing a decline as the market anticipates a week characterized by significant earnings reports and persistent tariff tensions. U.S. Treasury Secretary Scott Bessent does not support President Donald Trump’s assertion that trade discussions between the U.S. and China are in progress. Airbus has concluded an agreement to take over certain assets from supplier Spirit AeroSystems (NYSE:SPR), while gold experiences a decline as optimism regarding the resolution of trade disputes undermines the safe-haven appeal of the precious metal. U.S. stock futures dipped on Monday, as investors shifted their focus to a week filled with significant corporate earnings, set against a backdrop of tariff-induced global tensions. The Dow Futures contract experienced a decline of 37 points, translating to a decrease of 0.1%. Meanwhile, S&P 500 futures fell by 9 points, or 0.2%, and Nasdaq 100 futures saw a drop of 31 points, also reflecting a 0.2% decrease.

The principal indices on Wall Street concluded the trading session on a positive note on Friday, as market participants evaluated corporate earnings and sought indications of a potential thaw in the ongoing trade tensions between the U.S. and China. Tech emerged as one of the most significant gainers, bolstered by a 1.7% increase in shares of Google-parent Alphabet, which reported a surge in cloud revenue and informed investors that its heavily examined investments in artificial intelligence were yielding positive results.

Beijing has taken steps to exempt certain U.S. imports from its substantial 125% tariffs, which were enacted as a countermeasure to the significant 145% tariffs declared by Washington. However, China dismissed assertions from President Donald Trump that the two nations had engaged in trade negotiations (more below). Recent indications suggest that concerns regarding the widespread impact of the tariffs are growing, as evidenced by the final reading of a key survey of U.S. consumer sentiment released on Friday. The gauge from the University of Michigan reached its lowest point since July 2022, albeit with a slight upward revision from the preliminary reading.

This week, a series of U.S. corporate earnings reports will be released, commencing with several companies on Monday following the market’s closure. NXP Semiconductors, Nucor Corporation, Cincinnati Financial, and SBA Communications are all set to announce their earnings soon. Of the more than 175 companies in the benchmark S&P 500 that have reported thus far, over 70% have exceeded expectations, as per LSEG data referenced by Reuters. Aggregate S&P 500 earnings for the January to March period are now projected to rise by 9.7% compared to the previous year, an increase from the April 1 estimate of 8.0%, according to Reuters. While the quarterly figures from these companies have garnered significant attention, a substantial portion of the discourse has revolved around how companies are strategizing for the implications of elevated U.S. tariffs. Numerous companies have either reduced or eliminated their forecasts, indicating that the economic outlook for the upcoming months continues to be unclear.

Uncertainty shrouds the path forward for any detente in the U.S.-China trade dispute, especially following U.S. Treasury Secretary Scott Bessent’s inability this weekend to substantiate President Trump’s assertion that discussions between Washington and Beijing had commenced. Bessent remarked that he was uncertain whether Trump had engaged in discussions with Chinese President Xi Jinping, despite the White House suggesting a willingness to ease trade tensions. Trump stated that discussions were ongoing with China and that he had engaged in a conversation with Xi. In an appearance on ABC’s “This Week” program, Bessent remarked that Trump and Xi share a “very good relationship and a lot of respect for each other.” Bessent also stated that he had engaged with officials from China during the International Monetary Fund meetings in Washington last week. He did not specify whether they discussed tariffs. Recently, Bessent, regarded as a significant figure in any forthcoming negotiations, remarked that the discussions will be a “slog” and refrained from providing a timeline for a potential agreement.

Airbus has finalized an agreement to acquire certain assets from Spirit AeroSystems, marking a significant advancement in the intended restructuring of the struggling jet supplier alongside U.S. entity Boeing. The announcement follows Boeing’s agreement last year to repurchase Spirit AeroSystems for $4.7 billion in stock, while Airbus indicated it would take over the company’s unprofitable operations centered in Europe. Under the current arrangement, Airbus, the prominent European aircraft manufacturer, announced it would provide non-interest bearing credit lines totaling $200 million to Spirit. Airbus is set to obtain $439 million in compensation from Spirit, alongside the manufacturing of A220 wings at a facility located in Belfast, Northern Ireland. Spirit CFO Irene Esteves characterized the agreement as a “significant milestone” in the company’s efforts to finalize the Boeing acquisition.

Gold prices continued their downward trend on Monday, retreating from record highs as indications of a possible easing in U.S.-China trade tensions diminished the demand for the safe-haven metal. The price of spot gold decreased by 1.0%, settling at $3,283.62 per ounce, whereas gold futures for June delivery saw a slight decline of 0.1%, reaching $3,293.51 an ounce. Investors were also anticipating crucial U.S. jobs data for April, set to be released on Friday, alongside first-quarter U.S. gross domestic product figures and the Federal Reserve’s preferred inflation measure, the PCE price index, this week. The figures may influence the interest rate strategies of the Fed, which has indicated a preference for a wait-and-see stance regarding forthcoming policy decisions in light of global trade uncertainties.