Stock Futures Decline Ahead of Big Tech Earnings – Europe Market Wrap

S&P 500 futures fell ahead of major US economic data, while corporations reporting earnings provided few reassurances about the future.

Contracts on the S&P and Nasdaq 100 fell after a six-day surge, as more businesses retracted their guidance. SMC fell 16% in pre-market trading, ahead of earnings from mega-cap tech companies including Microsoft and Meta narrowly exceeded analysts’ expectations for Q1 revenue, but failed to provide a sales projection.

Economic barometers of US economic health are also due on Wednesday, with inflation and GDP statistics providing a glimpse of activity soon before Trump released country-specific tariffs on April 2nd. Investors have been cautiously hopeful, with the Nasdaq 100 on track to recoup all of its losses this month, following tariff reversals and anticipation that the Fed could slash interest rates to prevent a recession. Benchmark 10-year Treasuries were steady following six days of gains, with the yield at 4.16%. Gold fell.

In the latest shift in Trump’s trade approach, the US president issued an executive order to mitigate the impact of his car tariffs, stopping penalties on foreign-made vehicles from stacking on top of other levies and lowering charges on abroad parts used to manufacture vehicles in the US.