US Stock Index Futures Rise on Trade Deal with Japan, Earnings Ahead

US stock index futures slightly rise as President Donald Trump announces a "massive" trade deal with Japan. Traders also await earnings from Tesla and Alphabet. S&P 500 futures increase by 0.4%, and Nasdaq 100 futures rise by a similar margin.

US stock index futures experienced a slight uptick on Wednesday, July 2, 2025, following President Donald Trump's announcement of a "massive" trade deal with Japan. The news sparked optimism among traders, who also awaited earnings reports from Tesla (TSLA) and Alphabet (GOOGL, GOOG). The Dow Jones Industrial Average (YM=F) futures rose by approximately 0.3%, while S&P 500 futures (ES=F) and Nasdaq 100 futures (NQ=F) both moved up by 0.2% and 0.1%, respectively [1].

Trump posted on Truth Social on Tuesday evening, "We just completed a massive Deal with Japan, perhaps the largest Deal ever made." The agreement includes a 15% tariff on Japanese imports and a $550 billion Japanese investment in the U.S., which is expected to generate numerous jobs. Japan will also open its markets to American cars, trucks, rice, and other agricultural products, subject to reciprocal 15% tariffs [2].

The trade deal comes as Wall Street prepares for the highly anticipated second-quarter earnings reports from the "Magnificent Seven," including Tesla and Alphabet. Tesla's stock has been under pressure, down nearly 18% year-to-date, with investors closely watching for updates on the company's core auto business and its robotaxi rollout. Alphabet, on the other hand, is expected to provide insights into the company's AI investments, which have seen billions in spending [1].

The announcement of the trade deal follows a series of recent trade agreements secured by Trump, including deals with the Philippines and Indonesia. The Philippine agreement imposed a 19% tariff on its goods, while American-made products faced no import taxes. The Indonesian agreement reaffirmed a 19% tariff on imports from the country [2].

The market's response to the trade deal announcement was positive, with stock index futures showing a slight increase. However, the long-term impact of the trade deal on the U.S. economy and the stock market remains to be seen. Traders will continue to monitor the earnings reports from Tesla and Alphabet, as well as other companies set to report on Wednesday, including Chipotle (CMG), AT&T (T), IBM (IBM), and Alaska Air (ALK) [1].

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-futures-rise-after-us-strikes-a-trade-deal-with-japan-232647090.html
[2] https://timesofindia.indiatimes.com/business/international-business/massive-trade-deal-donald-trump-announces-15-reciprocal-tariffs-for-japan-reveals-550-billion-investment-says-us-to-get-90-of-profits/articleshow/122846889.cms