US stock futures rose on Tuesday morning as investors eagerly awaited major earnings reports and economic data set to be released throughout the week, signaling heightened anticipation across the financial markets.

While there have been no significant developments in the US-China trade negotiations and tariffs, US Treasury Secretary Scott Bessent provided a brief update on Monday, stating that it was China’s responsibility to “de-escalate” trade tensions. Bessent also indicated that India could soon be involved in a trade deal, suggesting that India would likely be one of the first countries to reach a trade agreement with the US.

Earnings Reports to Dominate the Week

This week promises to be a packed one for Wall Street, with four of the “Mag 7” tech giants—Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), and Amazon (AMZN)—scheduled to release their quarterly earnings.

On Tuesday, several other major companies are also reporting earnings, including Visa Inc. (V), Coca-Cola Co. (KO), Novartis AG (NVS), AstraZeneca PLC (AZN), and Pfizer Inc. (PFE), all of which are expected to impact US stock futures and overall market sentiment.

Interest Rates and Treasuries

At present, US 10-Year Treasuries are trading at 4.23%, while the 2-Year Treasuries stand at 3.70%. According to the CME Group’s FedWatch tool, markets are pricing in a 91.1% probability that interest rates will remain unchanged during the Federal Reserve’s May meeting. This marks a decline from previous probabilities, reflecting some uncertainty ahead of the FOMC meeting.

Stock Market Performance

As of Tuesday morning, US stock futures showed modest gains:

• Dow Jones: +0.28%

• S&P 500: +0.20%

• Nasdaq 100: +0.21%

• Russell 2000: +0.19%

The SPDR S&P 500 Trust ETF (SPY) was up 0.04% on Monday, while the Invesco QQQ Trust (QQQ), tracking the Nasdaq-100, was down 0.03%.

In the previous trading session, the S&P 500 closed slightly higher by 0.06%, marking its fifth consecutive winning day. However, most of the index sectors were mixed, with consumer staples and technology showing weak performances.

Economic Data to Watch

Several key pieces of economic data will be released on Tuesday that could influence market movements. These include:

• Advanced U.S. trade balance in goods (8:30 AM ET)

• Advanced retail inventories (8:30 AM ET)

• Advanced wholesale inventories for March (8:30 AM ET)

• S&P Case-Shiller home price index (9 AM ET)

• Consumer Confidence Report for April and Job Openings Report for March (10 AM ET)

Market Volatility on the Horizon

Analysts have warned that this week could be a period of significant market volatility due to a combination of earnings releases from major tech companies, along with the economic data scheduled for release. The outlook for this week is described as a “perfect volatility storm,” a term coined by trader and mentor Eric Daniel. He pointed out the additional uncertainty from the Federal Reserve’s May meeting, adding fuel to the fire.

Stocks in Focus

• Visa Inc. (V): Shares rose 0.41% in pre-market trade. Analysts expect the company to report $9.5 billion in revenue and earnings of $2.68 per share after markets close.

• Coca-Cola Co. (KO): Down 0.06% in pre-market trading, with analysts expecting $0.72 earnings per share on $11.2 billion in revenue.

• AstraZeneca PLC (AZN): Shares were down 2.57% after missing top-line estimates, but exceeding expectations on the bottom line.

• Pfizer Inc. (PFE): Up 0.13% in pre-market trading, with earnings expectations at $0.68 per share on $14.1 billion in revenue.

• Honeywell International Inc. (HON): Shares rose 0.63% pre-market, with earnings estimates of $2.21 per share on $9.6 billion in revenue.

Commodities, Gold, and Global Markets

• Crude oil futures fell 1.10% early in the day, trading at $61.37 per barrel.

• Gold dropped 0.66%, trading at $3,313 per ounce, down from last week’s record high of $3,400.

• The US Dollar Index (DXY) gained 0.26%, standing at 99.26 against a basket of global currencies.

Global markets saw positive movement, with Asian markets up, including the Nikkei, Kospi, and Nifty 50. However, Chinese benchmarks continued their decline, with Australia’s ASX 200 up and New Zealand’s NZX 50 down.

Looking Ahead

Investors are bracing for a volatile week as they prepare for major earnings releases and key economic data. The outcome of these events will play a crucial role in shaping market sentiment as the week unfolds. With trade tensions still simmering and economic uncertainty on the horizon, all eyes are on the next moves from the US Federal Reserve and China in the ongoing trade negotiations.