U.S. stock index futures moved slightly higher on Tuesday after the Biden administration indicated a softening stance on automotive tariffs. This shift sparked renewed investor optimism ahead of a packed week of corporate earnings and key economic data.
As of 5:25 a.m. ET:
- Dow e-minis were up 96 points (0.24%)
- S&P 500 e-minis gained 7.25 points (0.13%)
- Nasdaq 100 e-minis rose 25.25 points (0.13%)
The administration’s latest policy adjustment involves scaling back tariffs on foreign car parts used in domestic manufacturing. This move aims to ease cost burdens on U.S. automakers while maintaining competitive pressure on fully imported vehicles.
Automotive stocks responded favorably:
- Ford (F) rose 1.1%
- Tesla (TSLA) added 0.8%
- General Motors (GM) climbed 0.9% ahead of earnings
The broader market is also supported by expectations for de-escalation in U.S.-China trade tensions—a major source of volatility in recent months.
Earnings Season Gains Momentum
With first-quarter earnings season in full swing, investors are closely watching megacap tech and consumer names for signals about market direction. Analysts now expect S&P 500 companies to post 10.9% year-over-year earnings growth, up from a 7.8% forecast earlier in April.
This week features results from four members of the so-called “Magnificent Seven”:
- Meta Platforms (META)
- Microsoft (MSFT)
- Apple (AAPL)
- Amazon.com (AMZN)
Also on deck:
- Coca-Cola (KO) and United Parcel Service (UPS) report Tuesday
- NXP Semiconductors (NXPI) dropped 8.1% after narrowly beating revenue expectations and announcing CEO Kurt Sievers’ planned retirement
Despite short-term gains, the S&P 500 remains down about 1.5% for April, underscoring investor caution as earnings and macroeconomic data unfold.
Key Economic Reports Ahead
Markets are also focused on upcoming U.S. economic data that could shape the Federal Reserve’s policy outlook. Slated for release this week:
- JOLTS job openings and Consumer Confidence (Tuesday)
- Q1 GDP (Thursday)
- Nonfarm payrolls (Friday)
These indicators will be pivotal in assessing the labor market’s health and inflation trajectory. For now, traders are adopting a measured stance.
“Markets are lacking conviction,” said Michael Brown of Pepperstone. “We’re seeing a classic wait-and-see approach.”
With tariff shifts, strong earnings expectations, and critical data on deck, markets are poised for a potentially volatile week.
