Tech Earnings and Tariff Deadline Keep Markets on Edge

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U.S. stock futures held steady on Sunday evening, signaling a cautious start to a pivotal week shaped by key earnings from major technology firms and renewed uncertainty surrounding trade tariffs.

Futures tied to the S&P 500 Index (Standard & Poor’s 500), Nasdaq 100 Index, and Dow Jones Industrial Average all hovered near the flatline, reflecting investor hesitation following last week’s surge in growth-focused stocks. The Nasdaq rose 1.5% over the past week, while the S&P 500 climbed 0.6%. The Dow Jones, however, slipped into negative territory, weighed down by cyclical sectors.

Investor attention is centered on two major themes: upcoming earnings from leading technology firms and the approaching trade tariff deadline set by the White House. On Sunday, United States Commerce Secretary Howard Lutnick reinforced the administration’s August 1 deadline for imposing new tariffs, calling it a firm “hard stop.” However, he also acknowledged the possibility of ongoing dialogue beyond the deadline, signaling a potential shift in approach depending on economic or geopolitical developments.

This week marks the start of earnings season for the so-called “Magnificent Seven” tech stocks, with Alphabet Inc. and Tesla Inc. reporting on Wednesday. Their performance could either justify current high valuations driven largely by enthusiasm around artificial intelligence or spark renewed concerns about a tech-sector bubble. Strong results may help sustain market momentum, while any signs of weakness could weigh heavily on broader sentiment.

As of now, 86% of companies in the S&P 500 that have already reported second-quarter results have exceeded analyst expectations, according to market data. While this represents a historically strong beat rate, it comes amid relatively modest forecasts, which may temper investor enthusiasm moving forward.

On the economic front, the June release of the Leading Economic Index is scheduled for Monday and will be closely scrutinized for signs of either stabilization or continued weakness. The index, published by The Conference Board, is considered a forward-looking measure of U.S. economic health and could shape expectations around interest rates and Federal Reserve policy.

Monday will also bring corporate earnings from several high-profile companies, including Verizon Communications Inc., Cleveland-Cliffs Inc., and Domino’s Pizza Inc., providing a broader read on sector-specific performance as investors assess the health of the consumer and industrial segments.

As markets tread cautiously, all eyes remain on Washington and Wall Street, where policy decisions and tech performance are poised to drive the next leg of investor sentiment.