Stock Index Futures Gain With Focus on Trade Talks and Tesla Earnings, Fed Speak on Tap

June S&P 500 E-Mini futures (ESM25) are up +0.98%, and June Nasdaq 100 E-Mini futures (NQM25) are up +1.05% this morning, signaling a rebound from yesterday’s sell-off on Wall Street, while investors await comments from Federal Reserve officials and a raft of corporate earnings reports, with a particular focus on results from “Magnificent Seven” member Tesla.

Investors also remain focused on trade talks. The U.S. said it has made “significant progress” toward a bilateral trade agreement with India following talks between Vice President JD Vance and Indian Prime Minister Narendra Modi on Monday. At the same time, Thailand said that ministerial-level talks that were scheduled for this week have been postponed.

In yesterday’s trading session, Wall Street’s three main equity benchmarks closed sharply lower. Tesla (TSLA) slumped over -5% after Reuters reported that the production launch of the company’s more affordable vehicles had been delayed, and Wedbush analyst Dan Ives warned of a “code red” moment ahead of its Q1 earnings. Also, Nvidia (NVDA) slid more than -4% after Reuters reported that Huawei plans to start mass deliveries of an advanced AI chip to Chinese customers as soon as next month. In addition, Salesforce (CRM) fell over -4% after DA Davidson downgraded the stock to Underperform from Neutral with a price target of $200. On the bullish side, Netflix (NFLX) rose more than +1% after the streaming giant posted better-than-expected Q1 results and provided solid Q2 guidance.

Economic data released on Monday showed that the Conference Board’s leading economic index for the U.S. fell -0.7% m/m in March, weaker than expectations of -0.5% m/m and the largest decline in 17 months.

Chicago Fed President Austan Goolsbee said on Monday that the central bank requires more time to assess the net impact of President Trump’s policies. “The impact of tariffs on the macroeconomy could potentially be modest. We don’t know what the impact on the supply chain is going to be, so I think we want to be a little more of a steady hand and try to figure out the through line before we’re jumping to action,” Goolsbee said in comments to CNBC.

Meanwhile, U.S. rate futures have priced in an 89.5% chance of no rate change and a 10.5% chance of a 25 basis point rate cut at May’s monetary policy meeting.

First-quarter corporate earnings season is in full swing. Investors will be closely monitoring earnings reports today from prominent companies like Tesla (TSLA), GE Aerospace (GE), Verizon (VZ), Intuitive Surgical (ISRG), RTX Corp. (RTX), Lockheed Martin (LMT), and 3M Company (MMM). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +6.7% increase in quarterly earnings for Q1 compared to the previous year.

On the economic data front, investors will focus on the U.S. Richmond Fed Manufacturing Index, which is set to be released in a couple of hours. Economists estimate this figure will stand at -6 in April, compared to the previous value of -4.

In addition, market participants will hear perspectives from Fed Vice Chair Philip Jefferson, Philadelphia Fed President Patrick Harker, Minneapolis Fed President Neel Kashkari, and Fed Governor Adriana Kugler throughout the day.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.414%, up +0.20%.

The Euro Stoxx 50 Index is down -0.24% this morning as trading resumed after the Easter long weekend, with investors wading through a slew of headlines on U.S.-China trade tensions, the U.S. economic outlook, and the Federal Reserve’s independence. Technology and healthcare stocks led the declines on Tuesday. Sentiment soured after U.S. President Donald Trump intensified his criticisms of Fed Chair Jerome Powell, sparking new worries about the central bank’s independence. Also, concerns persist over the possibility of a global trade war erupting, with Beijing warning on Monday that it would retaliate against countries aligning with Washington’s efforts to isolate China. Meanwhile, a survey by the European Central Bank released on Tuesday showed that inflation in the Eurozone might be slightly higher this year than previously projected, but it is expected to stabilize at the central bank’s 2% target thereafter. Investor focus is now on the Eurozone’s preliminary consumer confidence data for April, due later in the session. In corporate news, Novo Nordisk A/S (NOVOB.C.DX) slumped over -7% after a pill from competitor Eli Lilly matched the weight loss and blood sugar control benefits of the company’s injected blockbuster Ozempic. At the same time, Biotage AB (BIOT.S.DX) jumped more than +56% after private equity firm KKR made a take-private offer for the company for 11.6 billion kronor ($1.2 billion).

Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed up +0.25%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.17%.

China’s Shanghai Composite Index closed slightly higher today, defying modest losses across Asia following an overnight drop on Wall Street. Consumer stocks outperformed on Tuesday. The gains came as expectations grew that China would roll out new stimulus measures to boost domestic demand and support asset prices. Chinese Premier Li Qiang stated on Friday that actions would be implemented to stabilize stock and property markets. Goldman Sachs said in a note on Monday, “The upcoming April Politburo meeting should provide important clues on the top leadership’s thinking.” Meanwhile, China allowed the yuan to weaken against nearly all major currencies to bolster its economy amid the escalating trade war with the U.S. In other news, China cautioned nations on Monday against entering trade agreements with the U.S. that could harm Chinese interests. Also, the Financial Times reported on Monday that Chinese state-backed funds were suspending new investments in U.S. private equity. In corporate news, CMOC Group climbed more than +4% after revealing its plan to acquire Canadian mining company Lumina Gold.

Japan’s Nikkei 225 Stock Index closed slightly lower today, tracking overnight losses on Wall Street after U.S. President Donald Trump intensified his pressure campaign on Fed Chair Jerome Powell. Export-oriented stocks slumped on Tuesday as the yen strengthened past 140 per dollar for the first time since September, driven by safe-haven demand and reports that the Bank of Japan sees little need to change its stance on rate hikes. Bloomberg reported on Tuesday that Bank of Japan officials currently see little reason to alter their existing stance of gradually increasing interest rates, despite lingering uncertainties related to U.S. tariffs. Meanwhile, investors continue to closely monitor developments related to U.S. tariffs following the “big progress” in the Japan-U.S. trade talks last week. Japanese Prime Minister Shigeru Ishiba stated on Monday that Japan will not continue making concessions to U.S. demands merely to secure a deal on tariffs. Japanese Finance Minister Katsunobu Kato is scheduled to meet with U.S. Treasury Secretary Scott Bessent in Washington this week, with the yen expected to be a key topic of discussion, though Reuters reported that Tokyo will resist any demands to prop up its currency. In other news, a high-level Japanese delegation will present a letter from Prime Minister Shigeru Ishiba to Chinese leader Xi Jinping this week. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -0.62% to 33.64.

Pre-Market U.S. Stock Movers

The Magnificent Seven stocks are moving higher in pre-market trading, with Nvidia (NVDA) and Amazon.com (AMZN) rising over +1%.

Calix (CALX) surged more than +12% in pre-market trading after the company posted upbeat Q1 results and issued above-consensus Q2 guidance.

Sportradar (SRAD) gained over +3% in pre-market trading after BofA double-upgraded the stock to Buy from Underperform with a price target of $28.

Zions Bancorporation (ZION) slumped more than -4% in pre-market trading after the regional lender reported weaker-than-expected Q1 EPS.

Texas Instruments (TXN) fell over -1% in pre-market trading after Barclays downgraded the stock to Underweight from Equal Weight with a price target of $125.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Tuesday - April 22nd

Tesla (TSLA), GE Aerospace (GE), Verizon (VZ), Intuitive Surgical (ISRG), Rtx Corp (RTX), Danaher (DHR), Chubb (CB), Lockheed Martin (LMT), Elevance Health (ELV), Northrop Grumman (NOC), Moody’s (MCO), 3M (MMM), Capital One Financial (COF), Kimberly-Clark (KMB), MSCI (MSCI), Baker Hughes (BKR), EQT (EQT), Equifax (EFX), Halliburton (HAL), PulteGroup (PHM), Synchrony Financial (SYF), Quest Diagnostics (DGX), Steel Dynamics (STLD), Northern Trust (NTRS), Packaging America (PKG), Genuine Parts (GPC), Pentair (PNR), East West Bancorp (EWBC), Manhattan Associates (MANH), Agree Realty (ADC), Range Resources (RRC), Enphase (ENPH), Old National Bancorp (ONB), Invesco (IVZ), Pegasystems (PEGA), Valmont Industries (VMI), Zurn Water Solutions (ZWS), PennyMac Financial (PFSI), Herc Holdings (HRI), United Community Banks (UCB), Iridium (IRDM), Trustmark (TRMK), Renasant (RNST), Pathward Financial (CASH), Monarch (MCRI), National Bank Holdings (NBHC), Veritex Holdings Inc (VBTX), Hope Bancorp (HOPE), QCR (QCRH), PennyMac Mortgage (PMT), Dime Community (DCOM).