FX.co ★ Stock Futures Swing Higher

U.S. stock futures indicated a positive opening, partly recovering from the significant losses seen in the previous session, driven by encouraging bank earnings as markets evaluated the risks to the U.S. economy following further intensification of its trade dispute with China. Futures for the three major equity indices were 0.7% to 1% higher. Leading U.S. bank JPMorgan reported record revenues in the first quarter, leading to a surge in pre-market trading, while Blackrock, Wells Fargo, and BNY Mellon all exceeded profit expectations. However, bonds continued their decline from the previous week, and other sectors underperformed as aggressive tariffs and ongoing uncertainty regarding future U.S. economic policy continued to create concerns about potential economic contraction. In response to the U.S. raising tariffs to 145% yesterday, China increased their tariffs on U.S. goods to 125%. Meanwhile, the White House provided no further details on potential tariff measures targeting base metals and chemicals. Overall, the indices saw gains between 3% and 5% throughout the week, following a historic rally on Wednesday.