U.S. stock futures are experiencing a slight decline as markets assess the ramifications of mixed consumer price data while preparing for additional inflation statistics. A host of U.S. companies are expected to release their latest quarterly reports, while chip gear supplier ASML in Europe warns that it cannot confirm it will grow in 2026, partly due to potential challenges arising from increased U.S. tariffs. On the trade front, President Donald Trump announces a new agreement with Indonesia, as the August 1 deadline for the implementation of his heightened “reciprocal” tariffs approaches significantly.

Dow futures contract experienced a decrease of 91 points, representing a decline of 0.2%. Similarly, S&P 500 futures saw a reduction of 15 points, also a 0.2% drop, while Nasdaq 100 futures fell by 75 points, equating to a 0.3% decline. Expectations that the Federal Reserve will refrain from lowering interest rates at its forthcoming meeting this month have become increasingly solidified following the recent data, likely paving the way for heightened tensions between Trump and Fed Chair Jerome Powell. Trump has suggested the potential of dismissing Powell, who has attracted his displeasure for not responding to Trump’s demands for the Federal Reserve to promptly lower interest rates. In the interim, earnings reports from prominent banking institutions, which often serve as the de facto commencement of the quarterly reporting period, generally exceeded projections; however, the market’s reaction was decidedly mixed. JPMorgan shares experienced a modest decline, whereas Citigroup saw an increase of 3.7%. In contrast, Wells Fargo concluded the day lower by 5.5% following a reduction in its full-year net interest income forecast.

On Tuesday, Trump declared that the United States would initiate a 19% tariff on imports from Indonesia, aligning with a trade agreement established with the Southeast Asian country. Indonesia is presently implementing a uniform tariff rate of 10% and has refrained from imposing any levies on U.S. exports entering the nation. The agreement further stipulates a penalty rate for the transshipment of goods from China to the U.S. via Indonesia. The agreement follows the White House’s disclosure of initial or framework accords with the United Kingdom, China, and Vietnam. Trump has indicated that additional agreements are forthcoming, as the countdown approaches the imminent August 1 deadline for the implementation of his proposed “reciprocal” tariffs. The White House has confirmed that the deadline will remain unchanged, following an earlier postponement prompted by significant market disruptions that occurred when Trump initially announced the duties in April. Recent estimates from Yale Budget Lab indicate that, following Trump’s tariff announcements as of Sunday, the effective average duty rate is projected to increase to 20.6%, a significant rise from the previous range of 2% to 3% prior to his return to power in January.

ASML has indicated the possibility of not attaining growth in 2026, despite the fact that the Dutch semiconductor equipment supplier reported second-quarter bookings exceeding expectations. In an interview available on the company’s website, CEO Christophe Fouquet highlighted the challenges posed by “macroeconomic and geopolitical” factors, especially tariffs. “While we continue to anticipate growth in 2026, we are unable to provide confirmation at this juncture,” Fouquet stated. The update fell short of the reassurances many analysts anticipated, highlighting the uncertain operating environment confronting companies globally in the initial phase of the last half of 2025. ASML’s shares declined by over 6% during the initial hours of trading in Europe. However, the earnings landscape was not entirely bleak. Cartier-owner Richemont posted a 6% increase in sales for the quarter ending in June, reaching 5.4 billion euros, which aligns closely with expectations. This growth can be attributed, in part, to robust demand for jewellery that compensated for the challenges faced in its watches division.

A number of U.S. companies are scheduled to report on Wednesday, as the emerging quarterly earnings season accelerates. They include prominent financial institutions such as Bank of America, Morgan Stanley, and Goldman Sachs, which could provide further clarity on the anticipated trajectory of the financial sector in the near term. An initial glimpse into the state of the pharmaceutical industry could also come from Johnson & Johnson. Following the conclusion of trading, United Airlines is set to announce its returns. Rival Delta Air Lines reinstated its once-scrapped guidance last week, citing hopes for stabilizing demand in the second half, as well as reduced industry capacity, which could bolster revenue per available seat miles.

On Wednesday, investors will have the opportunity to analyze another significant inflation metric, specifically the producer price index for June. Economists project that headline PPI will register at 2.5% for the twelve months leading to June, reflecting a slight decline from the 2.6% recorded in May. On a month-on-month basis, an increase of 0.2% has been observed, slightly outpacing the prior rate of 0.1%.
The Fed’s Beige Book is also set to be published. The report, published eight times annually, consolidates anecdotal insights regarding prevailing economic conditions, featuring interviews with businesses, economists, market specialists, and various other sources. “The Beige Book has gained significance in the current landscape due to the various factors affecting economic data, and it is expected to indicate ongoing stagflationary pressures within the domestic economy, characterized by growth challenges and rising prices stemming from trade tensions,” analysts at Vital Knowledge noted in a communication to clients.