U.S. Stock Futures Edge Higher as Investors Digest Earnings and Trade Deal Optimism

U.S. stock index futures were on the rise Friday, capping off a generally positive week as investors continued to digest strong quarterly earnings reports, alongside optimism about ongoing trade talks.

As of 05:30 ET (09:30 GMT), Dow Jones Futures rose by 90 points or 0.2%, S&P 500 Futures gained 10 points or 0.1%, and Nasdaq 100 Futures climbed 10 points, or 0.1%.

The main Wall Street indices were on track to finish the week with gains, with the Dow Jones Industrial Average set to close nearly 1% higher for the week. The Nasdaq Composite was also poised for a 1% gain, while the S&P 500 saw a rise of about 1.1% week-to-date.

Strong Earnings Boost Investor Sentiment

As of Friday, almost 83% of the 155 S&P 500 companies that had reported earnings exceeded Wall Street expectations. This positive earnings season helped drive both the S&P 500 and Nasdaq Composite to fresh all-time intraday and closing highs on Thursday.

Trade Deal Optimism Lifts Market Sentiment

Investor sentiment was also buoyed by the announcement of a trade deal with Japan, which helped lift expectations for further deals ahead of the August 1 deadline for new tariffs. The European Commission indicated that a negotiated solution was “within reach,” while U.S. and Chinese officials are set to meet in Stockholm next week to discuss extending the trade deal negotiations.

Intel Disappoints with Third-Quarter Outlook

On the earnings front, Intel (NASDAQ: INTC) reported weaker-than-expected guidance for the third quarter. The chipmaker revealed plans to reduce its headcount by 22% by the end of the year, aiming for a workforce of 75,000 through a combination of attrition and other means. Intel’s disappointing forecast weighed on sentiment, though the broader market remained focused on strong earnings from other sectors.

On a more positive note, Deckers (NYSE: DECK), the shoe retailer, saw its stock surge in premarket trading after reporting stronger-than-expected sales from its Hoka and Ugg brands. Paramount Global (NASDAQ: PARA) also rose after receiving approval from the Federal Communications Commission for its $8 billion merger with Skydance Media.

Economic Data: Durable Goods Orders Expected to Fall

The economic calendar for Friday highlights June durable goods orders, which are expected to fall sharply after the significant gains seen in the previous month. The decline is attributed to businesses preparing for possible tariffs. Additionally, weaker-than-expected manufacturing PMI data released on Thursday raised concerns about the U.S. economy, revealing that manufacturing activity unexpectedly shrank in July. However, the overall business activity still showed growth, bolstered by strength in the services PMI.

Fed Meeting and Rate Outlook

With the Federal Reserve meeting next week, traders are closely watching for any signs regarding interest rates. While the central bank is widely expected to leave rates unchanged, any remarks regarding the health of the economy will be closely scrutinized. President Donald Trump reiterated his call for lower interest rates during a visit to the Fed’s Washington headquarters on Thursday. However, Trump has backed off from recent threats to fire Fed Chair Jerome Powell, at least for the time being.

With trade talks and economic data dominating the market’s focus, the outlook remains dynamic as investors adjust to evolving conditions.