By Lisa Pauline Mattackal and Purvi Agarwal
(Reuters) -U.S. stock index futures edged lower on Monday as investors headed into a week packed with key economic data and earnings from some of Wall Street’s biggest companies, while the Trump administration’s trade policy developments remained in focus.
The three main indexes ended Friday with weekly gains, while the small-cap Russell 2000 marked its best week since November as signs emerged that the U.S. and China could be willing to de-escalate trade tensions.
However, competing claims on the state of negotiations from Beijing and U.S. President Donald Trump highlighted the uncertainties facing investors as they attempt to navigate Trump’s disruption of world trade.
“Even though work on multiple bilateral trade deals is continuing and some rapprochement between China and the U.S. is expected, high uncertainty remains,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
The upcoming week will see 180 S&P 500 companies report quarterly results, with the spotlight on “Magnificent Seven” megacaps Apple, Microsoft, Amazon and Meta Platforms.
Earnings season has so far has been somewhat upbeat, with S&P 500 earnings now expected to climb 9.7% in the first quarter from a year ago, higher than an April 1 estimate for an 8% gain, according to LSEG IBES.
Of the 179 companies in the S&P 500 that have reported earnings to date for the first quarter, 72.6% have reported earnings above analyst expectations, according to estimates compiled by LSEG.
However, many companies have flagged the uncertainty caused by the changing stance on tariffs, with some, including Procter & Gamble, cutting annual forecasts, and others such as American Airlines pulling their annual profit outlook entirely.
A majority of economists polled by Reuters said the risks of the global economy slipping into recession this year were high, with many pointing to Trump’s tariffs as damaging to business sentiment.
Crucial economic data, most notably monthly U.S. payrolls data, gross domestic product data and the personal consumption expenditures price index, will also be keenly watched for signals on how new tariffs are impacting economic growth, inflation and the labor market.
At 6:55 a.m. ET, Dow E-minis were down 88 points, or 0.22%, S&P 500 E-minis were down 17.75 points, or 0.32%, and Nasdaq 100 E-minis were down 61.5 points, or 0.31%.
The week also marks 100 days since U.S. President Donald Trump took office. An initial rally in equities after his election, on hopes for more pro-business policies and deregulation, has waned.
