U.S. stock futures slipped on Monday as investors braced for a week packed with critical corporate earnings amid ongoing global trade concerns. Futures for the Dow Jones Industrial Average dropped by 37 points, or 0.1%, while S&P 500 futures fell by 9 points (0.2%) and Nasdaq 100 futures declined by 31 points (0.2%) by 03:34 ET (07:34 GMT).
Despite Friday’s positive market close, where major indices saw gains—bolstered by a strong earnings season—investors are now focusing on whether corporate results can continue to beat expectations amidst elevated tariff risks.
Tech stocks led the charge last week, with Alphabet (NASDAQ:GOOGL) rising 1.7% after reporting a surge in cloud revenue and strong returns from its artificial intelligence investments. Meanwhile, China made moves to exempt some U.S. imports from heavy tariffs imposed earlier, with Beijing relaxing the 125% duties on select U.S. goods in response to Washington’s own 145% levies. However, President Donald Trump’s claims of trade talks between the U.S. and China were quickly refuted by Chinese officials, adding further uncertainty to trade relations.
A recent U.S. consumer sentiment survey highlighted growing concerns over the potential impacts of these tariffs. The University of Michigan’s final reading for April showed the lowest consumer sentiment since July 2022, signaling anxiety over the trade standoff.
Earnings Reports Set to Dominate Market Sentiment This Week
Corporate earnings take center stage this week, with major companies set to release their quarterly results. Among the first to report on Monday after market close are NXP Semiconductors (NASDAQ:NXPI), Nucor Corporation (NYSE:NUE), Cincinnati Financial (NASDAQ:CINF), and SBA Communications (NASDAQ:SBAC).
So far, more than 175 companies in the S&P 500 have reported, with over 70% surpassing analyst expectations. According to LSEG data cited by Reuters, aggregate earnings for the first quarter are expected to rise by 9.7% compared to the previous year, up from an earlier estimate of 8.0% on April 1. Despite strong results, some companies are revising or withdrawing guidance, citing the ongoing uncertainty caused by elevated tariffs and the broader economic environment.
Bessent Addresses U.S.-China Trade Uncertainty
U.S. Treasury Secretary Scott Bessent downplayed recent comments by President Trump regarding trade talks with China, adding further complexity to the already murky picture of U.S.-China relations. Bessent, speaking on ABC’s “This Week,” did not confirm any new discussions between Washington and Beijing, and he remained uncertain whether President Trump had spoken directly with Chinese President Xi Jinping.
Bessent acknowledged that while the two leaders share a strong relationship, the path toward a resolution of trade tensions remains uncertain. Bessent also described any future negotiations as a “slog,” providing no definitive timeline for an agreement. As markets continue to digest this uncertainty, traders will be watching closely for any shifts in sentiment around the trade dispute.
Airbus Finalizes Deal with Spirit AeroSystems
In corporate news, Airbus has officially completed a deal to acquire select assets from Spirit AeroSystems (NYSE:SPR), marking a significant step in the restructuring of the struggling U.S. aerospace supplier. The acquisition follows Boeing’s $4.7 billion repurchase agreement with Spirit, but Airbus will take over Spirit’s European operations, which have been plagued by losses.
As part of the deal, Airbus will offer non-interest bearing credit lines of up to $200 million to Spirit and will receive $439 million in compensation. Additionally, Airbus will manage the production of A220 wings at Spirit’s Belfast plant. Spirit’s CFO, Irene Esteves, called the agreement a “milestone” as the company works toward completing the Boeing acquisition.
Gold Prices Slide as Trade Tensions Show Signs of Easing
Gold prices fell on Monday, retreating from recent highs as easing trade tensions between the U.S. and China dampened demand for the safe-haven metal. Spot gold lost 1.0%, falling to $3,283.62 per ounce, while June gold futures edged down 0.1% to $3,293.51 per ounce.
With markets eyeing key U.S. economic data later this week—including April’s jobs report, first-quarter GDP figures, and the Federal Reserve’s preferred inflation gauge, the PCE price index—investors are cautious. These reports could influence future interest rate decisions by the Federal Reserve, which has indicated a “wait-and-see” approach amid global trade uncertainties.
