Futures Remain Muted Before Earnings Trial – Europe Market Wrap

US stock futures maintained narrow ranges as traders anticipated a flurry of big earnings reports that would provide clues as to whether the record-breaking equity market advance could continue.

In premarket trading on Tuesday, General Motors jumped 8% after beating profit expectations, while UPS fell as its revenue guidance missed projections. Europe’s STOXX 600 index crept to a new two-year high as autos and banking stocks led gains. The latest record close on Wall Street on Monday stretched the gains for the S&P 500 this month to 3.3%, while the Nasdaq 100 has surged 4.6%.

This reporting season’s busiest week is ramping up. Later this week, Microsoft and Alphabet will provide the first indication of whether the bullish sentiment surrounding the so-called Magnificent Seven looks sustainable. By the time Apple, Amazon, and Meta wrap up their reports on Thursday, the market will have received updates from five tech giants with a combined market value exceeding $10 trillion.

The Federal Reserve is expected to hold rates this week, but investors are eagerly awaiting Chair Powell’s remarks following Wednesday’s decision for hints on the policy outlook. Traders are assigning roughly even odds to the possibility that the central bank will begin lowering borrowing costs at its next meeting in March. The tech rally has been driven by expectations that interest-rate cuts from the Fed will help boost earnings growth.

Spanish Estimated GDP QoQ Actual 0.6% (Forecast 0.2%, Previous 0.3%) [Euro strengthened]