US stock markets remain steady as investors await corporate earnings reports and tariff news.
Stock Indices
Major stock indices such as the Dow Jones, S&P 500, and Nasdaq showed little change in early trading. The Dow Jones was up by 25 points, while the S&P 500 and Nasdaq remained close to flat at 0.03% and -0.13% respectively.
Corporate Earnings and Tariffs
General Motors' earnings report for the second quarter was disappointing, with a 32% drop in core profit. This was linked to a $1.1 billion reduction in profits due to the impact of tariffs. GM's stock declined as expectations grew for a more significant impact from tariffs in the current quarter. Investors are looking forward to earnings reports from Alphabet and Tesla on Wednesday.
US-China Trade Agreement Remarks
Investors are considering comments from US Treasury Secretary Scott Bessent that the US-China trade agreement reached in mid-May might be extended. He hinted at this during a speech, noting an upcoming meeting with Chinese counterparts in Sweden. Earlier in May, the two countries agreed to a 90-day pause on tariffs, boosting stock market optimism.
The current trends in the stock market indicate cautious optimism among investors who are focused on upcoming corporate earnings and tariff updates.
