Futures for U.S. Stocks Fall as Tech Earnings Season Kicks Off

Following an upbeat stretch for Wall Street, U.S. stock futures retreated slightly late Sunday as investors braced for a busy week packed with earnings reports from major corporations.

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Futures linked to the Dow Jones Industrial Average recently slipped by about 100 points, or roughly 0.2%. Meanwhile, S&P 500 futures edged down 0.2%, and Nasdaq-100 futures fell about 0.3%. In commodities markets, crude oil prices ticked slightly higher, while bitcoin prices moved lower.

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Stocks ended last week on a high note, with Friday marking the fourth straight session of gains. Both the S&P 500 and the Dow Jones Industrial Average achieved their longest winning streaks since January. According to data from Dow Jones Market Data, all three major indices delivered their best weekly performance since April 11. The Dow climbed 2.5% over the week, the S&P 500 added 4.6%, and the tech-heavy Nasdaq soared 6.7%.

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Technology stocks led much of the rally after a standout earnings report from Alphabet Inc., the parent company of Google. Alphabet’s results boosted investor sentiment, fueling optimism ahead of key earnings releases scheduled for this week from several tech titans, including Apple Inc., Amazon.com Inc., Meta Platforms Inc., and Microsoft Corp.

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Beyond earnings, investor mood had also brightened last week on hopes that President Donald Trump might soften his hardline stance on tariffs against Chinese imports. Trump's ongoing trade war has been a source of volatility for markets and anxiety among consumers. A recent New York Times/Siena College poll reflected this unease: 76% of respondents disapproved of Trump’s handling of the economy, and 55% opposed his use of tariffs as a negotiating tactic.

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Treasury Secretary Scott Bessent addressed these concerns during an appearance on ABC News’ "This Week" on Sunday. He downplayed the poll results, dismissing the criticism as “media driven.” Bessent also defended the administration’s strategy of announcing new tariffs and then selectively pausing or exempting certain products, describing it as a method of maintaining "strategic uncertainty" to keep trading partners off balance.

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According to Bessent, the administration is currently working on trade negotiations with more than 180 countries, although concrete results have been limited so far. In a separate interview with Time magazine, Trump claimed his administration had completed around 200 trade agreements. On Sunday, Bessent clarified those remarks, suggesting that the president was referring to sub-agreements or smaller deals that are part of broader negotiations.

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Bessent maintained a hopeful outlook, saying he expected some de-escalation with China in the short term, with an eventual agreement in principle, though finalizing a comprehensive trade deal could take a few more months.

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However, not everyone shares that optimism. Gary Cohn, Trump's former chief economic adviser, provided a more cautious view during an interview with CBS News’ "Face the Nation" on Sunday. Cohn warned that American consumers are on the verge of feeling the real effects of the ongoing trade dispute. He noted that cargo traffic between China and the United States has already dropped sharply, and he predicted that in the next two to four weeks, shortages of certain imported goods could start to appear — along with higher prices.

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Cohn stressed that smaller businesses, in particular, are vulnerable to the economic fallout from tariffs. Many of these companies face tough choices: either absorb higher costs, pass them along to customers, or simply wait and hope the situation improves. He cautioned that some may not survive the disruption.

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Furthermore, Cohn highlighted the regressive nature of tariffs, emphasizing that they tend to disproportionately impact lower-income households. "Tariffs are highly regressive," he explained, meaning that poorer consumers would bear the brunt of rising costs more than wealthier ones.

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As investors digest these warnings and prepare for another earnings-heavy week, market sentiment remains cautious. Although last week’s rally was impressive, uncertainties around trade policy, inflation, and global economic growth continue to loom large, potentially limiting further gains in the near term.

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