U.S. markets are on track for a higher open Monday, as investors digest growing optimism surrounding trade negotiations and brace for a wave of major corporate earnings.
Futures linked to the Dow Jones Industrial Average, Nasdaq, and S&P 500 are pointing toward early gains, rebounding from a muted close last Friday when stocks lacked direction for most of the day.
The positive tone in the pre-market session appears to stem from hopes that the U.S. and European Union can resolve ongoing trade tensions. Over the weekend, Commerce Secretary Howard Lutnick expressed confidence that a deal is within reach.
“These are the two biggest trading partners in the world, talking to each other. We’ll get a deal done,” Lutnick told CBS News. “I am confident we’ll get a deal done.”
Still, Lutnick emphasized that time is limited for negotiations to wrap up before new tariffs kick in on August 1.
“Nothing stops countries from talking to us after August 1st, but they’re going to start paying the tariffs on August 1st,” he said.
Investors are also awaiting key earnings reports this week from several high-profile firms, including Alphabet (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and Intel (NASDAQ:INTC), which could further influence market sentiment.
Friday’s session ended in mixed fashion, with the major indices unable to hold early gains. The Nasdaq rose just 10.01 points to close at a record 20,895.66, while the S&P 500 dipped slightly by 0.57 points to 6,296.79. The Dow fell 142.30 points, or 0.3%, to 44,342.19.
For the week, the Nasdaq gained 1.5%, the S&P 500 rose 0.6%, and the Dow edged down by 0.1%.
Markets were initially lifted by Thursday’s upbeat economic data, which helped ease investor concerns around the impact of global trade disputes. However, momentum faded quickly, with traders opting to lock in profits after recent highs.
Netflix (NASDAQ:NFLX) was among the session’s biggest decliners, sliding 5.1% to a five-week low. While the streaming company topped Q2 earnings expectations, it cautioned that operating margins would weaken in the back half of the year.
Shares of American Express (NYSE:AXP) and 3M (NYSE:MMM) also fell, despite both companies reporting earnings beats.
Meanwhile, the University of Michigan’s latest consumer sentiment survey showed a modest improvement. The index came in at 61.8 for July, up from 60.7 in June and ahead of forecasts calling for 61.5 — the highest reading since February.
Most sectors showed limited movement, but utilities outperformed. The Dow Jones Utilities Average climbed 1.6%, marking its strongest close in more than seven months.
Brokerage stocks also fared well, led by a 7.8% rally in Interactive Brokers (NASDAQ:IBKR) after it reported stronger-than-expected earnings. The NYSE Arca Securities Broker/Dealer Index rose 1.3%.
In contrast, biotechnology stocks came under pressure, with the NYSE Arca Biotechnology Index falling 2.2%. Airline and oil services names also retreated, weighing on the broader market.
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