Markets Edge Higher as Earnings Season Kicks Off and US Eases Auto Tariffs

US stock futures rose modestly on Tuesday as investors turned their focus to a flurry of corporate earnings reports and the latest developments in trade policy.

The market’s attention is centered on quarterly results from major consumer-facing companies, including Coca-Cola, General Motors, and Spotify, with analysts closely watching for early signs of how recently imposed tariffs may be affecting operations and outlooks.

Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 all edged higher in early trading. The E-Mini Dow was up 0.24%, the S&P 500 gained 0.30%, and the Nasdaq-100 rose 0.36%. The S&P 500 and Dow both extended their recent gains, with Monday marking a fifth consecutive session of increases for each index—representing their longest win streaks since late last year. Treasury yields also moved slightly higher, with the 10-year yield climbing to 4.236%.

The broader market tone has been cautiously optimistic following indications that the Trump administration will soften its stance on automotive tariffs. The administration is expected to prevent new levies from stacking on top of existing duties on imported vehicles and parts, with some retroactive reimbursements for automakers. The move comes ahead of a presidential trip to Michigan and could provide temporary relief to a US auto sector that has voiced concerns over the cost burden of new trade policies.

Automakers and suppliers have warned that tariffs on imported parts and vehicles could lead to price increases, supply disruptions, and production delays. While the administration frames the policy adjustment as a step toward encouraging domestic manufacturing, the long-term implications remain uncertain.

Key earnings reports this week will offer a clearer picture of how tariff-related pressures and consumer trends are playing out. In addition to Coca-Cola and GM, results from tech giants Apple, Amazon, Meta Platforms, and Microsoft—often referred to as part of the “Magnificent Seven”—are due later this week. These reports are expected to heavily influence broader market sentiment.

International markets largely followed Wall Street’s lead. European equities opened higher, bolstered by earnings from major firms like HSBC and Deutsche Bank. In Asia, trading was more mixed, with Japanese markets closed for a holiday and Hong Kong’s Hang Seng little changed.

Meanwhile, the US dollar strengthened modestly against major currencies, while oil prices slipped and gold edged lower. Analysts noted that while softer trade rhetoric is helping to lift market sentiment in the short term, concerns about economic resilience remain. Investors will be watching closely for first-quarter GDP data and April’s jobs report, which will offer further insight into the economy’s trajectory amid ongoing trade tensions.

With input from CNN, the Wall Street Journal, and Reuters.