Stock Market Futures Tread Cautiously Ahead of Earnings and Trade Deals

Nasdaq, S&P, and Dow futures are trading cautiously on Tuesday, with the S&P 500 pulling back from a new record high. Investors are focused on earnings reports from big tech companies and potential trade deals.

Stock index futures were largely flat on Tuesday, with the S&P 500 coming off a new record high, as attention remained on earnings reports and potential trade deals. The S&P 500 futures (SPX) and the Nasdaq Composite (IXIC) were trading cautiously, while the Dow Jones Industrial Average (DJI) showed a slight decline. The market's focus was on the earnings reports from major tech companies, including Alphabet (GOOGL.O) and Tesla (TSLA.O), which are scheduled to report this week [1].

Investors are also keeping a close eye on potential trade deals that could impact the U.S. economy. U.S. Commerce Secretary Howard Lutnick expressed confidence in securing a trade deal with the European Union, despite ongoing tariff threats from the Trump administration [2]. The S&P 500 has gained about 8% year to date, with investors betting that the economic impact of tariffs may be less severe than initially feared [2].

The earnings season is set to kick off with Alphabet and Tesla reporting on Wednesday, followed by other major tech companies. Analysts expect the S&P 500 companies to report a 6.7% increase in earnings for the second quarter, with Big Tech driving much of that growth [3]. Companies that have reported so far have generally met or exceeded expectations, providing a positive outlook for the earnings season [3].

The market is also awaiting the Federal Reserve's decision on interest rates. Traders have largely ruled out a July rate cut but see a greater than 50% chance of a cut by the September meeting [3]. Investors will also watch for jobless claims data and the July business activity report, which are expected on Thursday [3].

The Indonesian Trade Minister, Budi Santoso, is optimistic about the potential investment boost from the reduction of reciprocal tariffs with the United States to 19 percent. He believes that this low tariff could attract significant investment to Indonesia [4].

In summary, the market is cautiously trading on Tuesday, with investors focused on earnings reports and potential trade deals. The S&P 500 is expected to report strong earnings growth, and the Federal Reserve's interest rate decision will be closely watched. The Indonesian Trade Minister's optimism about the impact of reduced tariffs adds to the mix of factors influencing market sentiment.

References:
[1] https://seekingalpha.com/news/4469720-sp500-nasdaq-dow-jones-outlook-stock-market
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3TF238:0-alset-says-on-july-17-regained-compliance-with-nasdaq-1-bid-price-sec-filing/
[3] https://www.reuters.com/business/sp-500-nasdaq-notch-record-high-closes-lifted-by-alphabet-2025-07-21/
[4] https://en.tempo.co/amp/2029862/todays-top-3-news-indonesia-trade-minister-upbeat-trump-tariffs-will-boost-investment