June S&P 500 E-Mini futures (ESM25) are down -0.32%, and June Nasdaq 100 E-Mini futures (NQM25) are down -0.35% this morning as mixed signals on U.S.-China trade relations weighed on investors’ risk appetite.

U.S. President Donald Trump said on Thursday that his administration was engaged in trade discussions with China, while Chinese Foreign Ministry spokesman Guo Jiakun stated that Beijing is not holding tariff negotiations with the U.S. and warned Washington against misleading the public about the talks. At the same time, Bloomberg News reported on Friday that China is considering suspending its 125% tariff on U.S. imports of medical equipment and certain industrial chemicals such as ethane.

Investors also parsed a mixed bag of corporate earnings reports. Intel (INTC) slumped more than -6% in pre-market trading after the struggling chipmaker gave a disappointing Q2 revenue forecast. At the same time, Alphabet (GOOGL) climbed over +5% in pre-market trading after the Google parent reported stronger-than-expected Q1 results.

U.S. equity futures initially moved higher as investors cheered forecast-beating quarterly results from Alphabet and the prospect of earlier-than-expected interest rate cuts from the Federal Reserve.

In yesterday’s trading session, Wall Street’s major indices ended in the green. The Magnificent Seven stocks advanced, with Nvidia (NVDA) and Tesla (TSLA) rising over +3%. Also, ServiceNow (NOW) surged more than +15% and was the top percentage gainer on the S&P 500 after the software company reported solid Q1 results and issued above-consensus Q2 subscription revenue guidance. In addition, Texas Instruments (TXN) climbed over +6% after the analog chipmaker posted upbeat Q1 results and provided strong Q2 guidance. On the bearish side, Fiserv (FI) plunged more than -18% and was the top percentage loser on the S&P 500 after the payment technology company reported weaker-than-expected Q1 adjusted revenue.

Economic data released on Thursday showed that U.S. durable goods orders jumped +9.2% m/m in March, stronger than expectations of +2.1% m/m, while core durable goods orders, which exclude transportation, were unchanged m/m, weaker than expectations of +0.3% m/m. Also, the number of Americans filing for initial jobless claims in the past week rose +6K to 222K, in line with expectations. In addition, U.S. existing home sales fell -5.9% m/m to a 6-month low of 4.02M in March, weaker than expectations of 4.14M. 

Fed Governor Christopher Waller said on Thursday that he would support interest rate cuts if elevated tariff levels begin to hurt the labor market. “I would expect more rate cuts, and sooner, once I started seeing some serious deterioration in the labor market,” he said. Also, Cleveland Fed President Beth Hammack said, “If we have clear and convincing data by June, then I think you’ll see the committee move if we know which way is the right way to move at that point in time.”

Meanwhile, U.S. rate futures have priced in a 93.3% chance of no rate change and a 6.7% chance of a 25 basis point rate cut at the May FOMC meeting.

On the earnings front, notable companies like AbbVie (ABBV), Colgate-Palmolive (CL), HCA Healthcare (HCA), Charter Communications (CHTR), and Schlumberger (SLB) are slated to release their quarterly results today. 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 University of Michigan’s U.S. Consumer Sentiment Index, which is set to be released in a couple of hours. Economists expect the final April figure to be revised lower to 50.6 from the preliminary reading of 50.8.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.301%, down -0.09%.

The Euro Stoxx 50 Index is up +0.77% this morning as some positive earnings news and signs of a possible de-escalation in the U.S.-China trade war boosted sentiment. Travel and automobile stocks led the gains on Friday. The benchmark index is on track to end the week higher. Data from the Office for National Statistics released on Friday showed that Britain’s monthly retail sales unexpectedly rose in March, though tariffs and the resulting economic uncertainty could hamper business in the coming months. Separately, data from the statistical agency Insee showed that France’s manufacturing climate indicator rose to an 11-month high in April. Meanwhile, China is reportedly weighing exemptions for certain U.S. imports from its 125% tariffs, fueling hopes for a de-escalation in the trade war between the world’s two largest economies. In corporate news, Safran (SAF.FP) climbed over +4% after the French jet engine maker posted better-than-expected Q1 revenue and expressed confidence in hitting its full-year targets. Also, Stora Enso Oyj (STER.S.DX) rose more than +1% after reporting stronger-than-expected Q1 operating profit.

U.K.’s Retail Sales, U.K.’s Core Retail Sales, and France’s Business Survey were released today.

U.K. March Retail Sales arrived at +0.4% m/m and +2.6% y/y, stronger than expectations of -0.3% m/m and +1.8% y/y.

U.K. March Core Retail Sales came in at +0.5% m/m and +3.3% y/y, stronger than expectations of -0.4% m/m and +2.2% y/y.

The French April Business Survey stood at 99, stronger than expectations of 96.

Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.07%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.90%.

China’s Shanghai Composite Index erased earlier gains and closed slightly lower today as investors were disappointed by the absence of new stimulus from the country’s Politburo meeting. Property stocks slumped on Friday, while steel and hardware stocks gained ground. Still, the benchmark index notched its second consecutive weekly gain. The ruling Communist Party’s Politburo, a top policy decision-making body, on Friday reaffirmed plans to speed up debt issuance and loosen monetary policy, while also pledging support for employers to protect jobs, in a bid to preserve economic stability amid rising challenges from triple-digit U.S. tariffs. “The fundamentals of China’s sustained economic recovery need to be further consolidated, and the impact of external shocks is rising,” said a report from state media outlet Xinhua on the Politburo’s meeting. However, analysts noted that the highly anticipated meeting did not yield any fresh stimulus beyond the budget previously approved at the National People’s Congress in March, leaving investors disappointed. Meanwhile, U.S. President Donald Trump said on Thursday that his administration was engaged in trade discussions with China, while Chinese Foreign Ministry spokesman Guo Jiakun stated that Beijing is not holding tariff negotiations with the U.S. and warned Washington against misleading the public about the talks. Still, hopes of a potential easing in U.S.-China trade tensions persisted, with Bloomberg News reporting that China is considering suspending its 125% tariff on U.S. imports of medical equipment and certain industrial chemicals such as ethane.

Japan’s Nikkei 225 Stock Index closed sharply higher today on positive comments from the U.S.-Japan trade talks. Japanese Finance Minister Katsunobu Kato said on Thursday that specific currency levels or targets were not discussed during his talks with U.S. Treasury Secretary Scott Bessent, and both parties agreed that foreign-exchange rates should be set by the market. That helped ease concerns about a further rise in the yen and lifted sentiment. The tech-led rally on Wall Street overnight also boosted risk appetite. Electronics stocks led the gains on Friday. The benchmark index ended the week higher. Meanwhile, government data released on Friday showed that core inflation in Japan’s capital accelerated to a 2-year high in April due to soaring food prices, reigniting expectations for interest rate hikes by the Bank of Japan. Naoya Hasegawa, chief bond strategist at Okasan Securities, said, “The stronger CPI data reminded investors that the BOJ would raise interest rates eventually if the risks [from] the U.S. tariffs ease.” BOJ Governor Kazuo Ueda said on Thursday that the central bank will proceed with interest rate hikes if underlying inflation moves toward its 2% target as anticipated. Ueda’s remarks came ahead of the BOJ’s policy meeting next week, when the central bank is expected to leave interest rates unchanged at 0.5% and lower its growth projections. In corporate news, Nidec jumped over +12% after reporting a stronger-than-expected quarterly profit and projecting a record full-year operating profit. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -4.06% to 28.84.

The Japanese April Tokyo Core CPI stood at +3.4% y/y, stronger than expectations of +3.2% y/y.

Pre-Market U.S. Stock Movers

Alphabet (GOOGL) climbed over +5% in pre-market trading after the Google parent reported stronger-than-expected Q1 results.

Coursera (COUR) gained more than +5% in pre-market trading after the company posted upbeat Q1 results and issued above-consensus FY25 revenue guidance. 

Charles Schwab (SCHW) rose over +1% in pre-market trading after Goldman Sachs upgraded the stock to Buy from Neutral with a $100 price target.

Intel (INTC) slumped more than -6% in pre-market trading after the struggling chipmaker gave a disappointing Q2 revenue forecast.

T-Mobile US (TMUS) slid over -5% in pre-market trading after the carrier reported fewer new wireless phone subscribers than analysts expected in Q1.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Friday - April 25th

AbbVie (ABBV), HCA (HCA), Aon (AON), Colgate-Palmolive (CL), Charter Communications (CHTR), Schlumberger (SLB), Phillips 66 (PSX), Centene (CNC), LyondellBasell Industries (LYB), Avantor (AVTR), Saia (SAIA), AutoNation (AN), Rithm Capital (RITM), Moog (MOGa), Gentex (GNTX), Portland General Electric (POR), Flagstar Financial (FLG), Trinet Grou (TNET), Lazard (LAZ), Sensient Technologies (SXT), Hilltop (HTH), Phinia (PHIN), Carter’s (CRI), Stellar Bancorp (STEL), Preferred Bank (PFBC), Virtus (VRTS).