U.S. stock futures declined ahead of a busy week filled with corporate earnings reports and economic data that will help form an initial picture of the U.S. economy’s response to President Trump’s tariffs.
This pullback comes at a time when markets are showing positive momentum, with the S&P 500 recording its longest daily winning streak since January, amid signs of easing pressure on Federal Reserve Chairman Jerome Powell, and optimism regarding the future of tariffs on China. Nevertheless, markets remain cautious, with expectations of growth before the close of the final trading week of an eventful April.
The main highlight of this week is the corporate earnings season, with around 180 companies from the S&P 500 expected to report their quarterly financial results. Tech giants are at the forefront, with anticipated earnings reports from Apple (AAPL), Amazon (AMZN), Meta (META), and Microsoft (MSFT), along with Coca-Cola (KO).
On the economic front, investors are closely watching the release of the Personal Consumption Expenditures (PCE) index on Wednesday — the Federal Reserve’s preferred gauge of inflation — to assess the impact of tariffs on consumer spending. They are also awaiting April’s nonfarm payroll report, with expectations that the U.S. economy will add 133,000 jobs, while the unemployment rate is projected to hold steady at 4.2%.
Overall, this week is expected to bring market volatility, as earnings results and economic indicators could significantly influence future trends in the U.S. economy.
