Stock markets exhibited mixed movements on Tuesday as investors shifted their focus from US political developments to a packed week of corporate earnings reports. Tech giants Tesla Inc. and Alphabet Inc. are slated to release their results later in the day.
In Europe, the Stoxx 600 Index experienced fluctuations. Gains in technology and travel stocks were countered by declines in the chemicals and mining sectors. Futures for the S&P 500 suggested a lower opening for Wall Street. The US dollar and Treasury yields remained steady.
This week, companies representing 29% of the S&P 500’s market capitalization are expected to report earnings, drawing attention to whether the rally in technology stocks, which has bolstered the benchmark index this year, will continue.
Analysts are particularly interested in Tesla’s updates on its robotaxi service, while Alphabet’s report is anticipated to provide insights into its artificial intelligence offerings and Google Cloud revenue. LVMH, the world’s leading luxury goods conglomerate, is projected to report a rise in second-quarter sales when it releases its earnings after the market closes on Tuesday.
Political developments in the US remain significant, with Kamala Harris securing enough pledged delegates to secure the Democratic presidential nomination. Economic data, including key US economic readings and the Federal Reserve’s preferred inflation measure, are also scheduled for release later in the week.
“The earnings season is now gaining momentum,” noted Andrea Tueni, head of sales trading at Saxo Banque France. “This will be the primary focus this week, preceding the inflation data expected on Friday. I do not anticipate a reassessment of the ‘Trump trade’ in the near term.”
The Japanese yen strengthened against the dollar as traders prepare to adjust their carry positions amid the summer holiday season. Some Bank of Japan officials are considering a potential rate increase at the July meeting, though concerns over weak consumer spending may complicate their decision, according to sources familiar with the matter.
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