US Stock Futures Rise With Earnings Center Stage – Europe Market Wrap

US market futures rose slightly as the busiest week of the earnings season began, with prospects for a prolonged surge hinged on whether big tech can justify expensive valuations fueled by the artificial intelligence boom.

Contracts for the S&P 500 and Nasdaq 100 rose approximately 0.3% as Wall Street recovered from a $2 trillion selloff. Early Tuesday reports were mainly favourable, with UPS and General Motors shares jumping in premarket trade after beating profit expectations. Pepsi shares fell after reporting lower shipments in North America.

The “Magnificent Seven” cohort of tech megacaps, led by Tesla, will report first after today’s market closure. Meta is next on Wednesday, then Microsoft and Alphabet on Thursday.

Earnings will remain at the forefront of investors’ concerns this week, with over 180 businesses releasing results, accounting for more than 40% of the S&P 500 market value. The emphasis on corporate profitability follows a sell-off spurred by geopolitical anxieties, indicating that the Federal Reserve will not decrease interest rates quickly.