Overnight – Stocks mixed as investors wait on earnings and trade deals
Stocks were mixed overnight, as investors digested the latest comments from U.S. Treasury Secretary Scott Bessent around trade deals and looked ahead to earnings reports from megacap companies Apple, Amazon, Microsoft and Meta
Stocks continued to rise, building on last week’s gains, as investors grew optimistic that the U.S. would soon announce new trade deals. Analyst Adam Crisafulli noted that while hopes for trade agreements are supporting the S&P 500 in the near term, the index is already at the upper end of its trading range and further gains may be limited.
U.S. Treasury Secretary Scott Bessent stated that several major trading partners have presented strong tariff proposals, and a deal with India could be among the first finalized. Bessent highlighted positive progress in negotiations with Asian countries, including Japan, South Korea, and India. He also indicated that China’s recent move to exempt certain U.S. products from tariffs signals a willingness to ease trade tensions, but emphasized that further de-escalation depends on China’s actions. The Trump administration appears to be seeking to reduce tensions in the ongoing trade war, which has unsettled markets and raised concerns about a global recession.
Investors are closely watching upcoming earnings reports from major technology companies, including Apple, Microsoft, Amazon, and Meta, to assess corporate resilience amid ongoing tariff uncertainty and concerns about capital spending on AI. Microsoft and Meta are set to report on Wednesday, with Apple and Amazon following on Thursday. Key reports are also expected from companies in other sectors, such as Visa, Coca-Cola, and Caterpillar.
While first-quarter earnings and economic data have been relatively strong, Crisafulli warned that the full impact of tariffs has yet to be felt, and this could soon change. Overall, the market remains volatile, with sentiment heavily influenced by developments in trade negotiations and tariff policy
ASX SPI 8025 (+0.21%)
The ASX should open higher in line with a broad rally in the US as we wait for more news on Trade deals and earnings. We don’t expect much movement today
