Markets Await Tech Earnings and Economic Data Amid Trade Uncertainty

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Index Update

U.S. stock futures rose on Tuesday as investors awaited earnings from major tech firms like Meta, Microsoft, Apple, and Amazon. While most S&P 500 companies have beaten earnings expectations, many are lowering future guidance due to tariff concerns. Treasury Secretary Scott Bessent said it's "up to China" to ease trade tensions but noted progress elsewhere. Investors are also eyeing key economic data, including home prices, consumer confidence, and job openings.

Market Movers

On Monday, the top gainers were CG Oncology, Inc (+38.58%), followed by     QuantaSing Group Limited (+15.57%). On the contrary Zynex, Inc. (-12.86%) and INMODE LTD. (-12.70%) declined the most the same day.

Commodities Update

WTI and Brent crude oil futures both fell over 1% on Tuesday, extending losses for a second straight session amid rising concerns about oversupply and uncertainty surrounding U.S.-China trade negotiations. WTI dropped to around $61.1 per barrel, while Brent declined to $64.9. The ongoing trade dispute between the two largest oil consumers has prompted analysts to lower their oil price forecasts, with Barclays cutting its 2025 Brent crude outlook by $4 to $70 per barrel. Market sentiment is also pressured by expectations that some OPEC+ members may push for accelerated output hikes at their upcoming May 5 meeting, potentially leading to further supply increases. Meanwhile, developments in U.S.-Iran nuclear negotiations could add to supply risks if sanctions are eased and Iranian oil reenters the market.

Gold prices fell below $3,320 per ounce as demand for safe-haven assets weakened following signs of easing global trade tensions. Treasury Secretary Scott Bessent highlighted improved tariff proposals from major trading partners and noted that China’s recent actions suggest a willingness to de-escalate the dispute. However, he emphasized that it remains up to China to move the process forward. Investors are now turning their attention to key U.S. economic data releases later this week, including Q1 GDP, March PCE inflation, and April nonfarm payrolls, which could influence expectations around the Federal Reserve’s next moves.

Macro Update

The U.S. 10-year Treasury yield held around 4.2%, its lowest in three weeks, as investors awaited key economic data that could show the impact of new tariffs. Upcoming reports on GDP, PCE inflation, and jobs could influence expectations for Fed rate cuts. Meanwhile, trade tensions persisted, with China denying talks with the U.S., though Treasury Secretary Scott Bessent highlighted progress with other partners and hinted at a possible trade deal with India.

Futures Update

U.S. stock futures were mixed as investors weighed corporate earnings and awaited key economic data to assess the impact of tariffs. Gains in blue-chip stocks were supported by strong results from companies like Honeywell and UPS, while automakers like General Motors fell amid ongoing tariff uncertainty. The administration signaled plans to ease some automotive tariffs, particularly on foreign parts used in domestic manufacturing. Market sentiment remained cautious with limited direction, as investors awaited updates on U.S.-China trade talks and upcoming economic reports, including consumer confidence and job openings. Key tech giants from the "Magnificent Seven" are also set to report earnings, drawing further market attention.

Stocks experienced fluctuations during Monday's trading session, reflecting ongoing volatility. After starting the day without a clear direction, the market faced pressure during the afternoon before making a recovery towards the close. All major indices finished the day with mixed results, with the S&P 500 rising by 3.52 points, or 0.06%, to close at 5528.74. From a technical perspective, the index is currently hovering around its 50-period EMA, suggesting that it might encounter volatility in the short term. This could indicate a phase of consolidation before a definitive trend takes shape. Moreover, the 14-period Relative Strength Index (RSI) is positioned at the midpoint, pointing to potential sideways momentum in the near term. Key support is identified at 5335, while resistance is set at 5712.