FX.co ★ US Futures Dip on Trade Fears, Earnings Kick Off

On Tuesday, U.S. stock futures took a downturn, with S&P 500 and Nasdaq 100 futures both declining by over 1%, and Dow Jones futures decreasing by roughly 280 points after a robust session the previous day. The initial optimism surrounding U.S.–China trade relations dissipated as both nations began imposing new port fees on each other's shipments, sparking worries about potential further escalations. Additionally, China implemented sanctions on five U.S. subsidiaries of South Korea’s Hanwha Ocean. Concurrently, the earnings season commenced: JPMorgan hovered around its previous levels before the market opened, despite reporting slightly higher-than-expected credit loss provisions at $3.4 billion. BlackRock saw a 0.3% decrease even after surpassing earnings and revenue forecasts. Similarly, Goldman Sachs experienced a 0.8% dip despite a revenue beat. Johnson & Johnson remained largely unchanged after reporting stronger-than-expected results and announcing plans to divest its orthopedics division. Conversely, Wells Fargo surged by 2.3% following a notable profit increase.