U.S. stock futures edged lower on Monday as investors awaited a crucial wave of earnings reports from American megacap companies, which collectively hold a market value of approximately $20 trillion.

By 07:42 ET (12:42 GMT), S&P 500 futures had slipped 0.1% to 5,520.75 points, while Nasdaq 100 futures also dipped 0.1% to 19,421.75 points. Dow Jones Industrial Average futures remained largely flat.

Wall Street Momentum Slows on U.S.-China Trade Uncertainty

Major Wall Street indexes ended last week with gains, driven in part by Alphabet’s (GOOGL) stronger-than-expected quarterly results, which fueled renewed optimism around artificial intelligence and extended the recent tech rally. The S&P 500 closed Friday 0.7% higher, the Nasdaq Composite climbed 1.3%, and the Dow Jones Industrial Average finished the session relatively unchanged.

However, momentum has slowed as confusion over U.S.-China trade relations resurfaced. Media reports suggesting that China had exempted certain U.S. imports from retaliatory tariffs provided a temporary boost to sentiment. But that optimism faded after U.S. Treasury Secretary Scott Bessent contradicted President Donald Trump’s earlier claims, stating he was unaware of any active tariff negotiations with China or recent discussions between Trump and Chinese President Xi Jinping. This cast doubt over Trump’s earlier remarks, in which he implied ongoing talks and direct engagement with Xi.

The Trump administration has signaled a willingness to ease trade tensions, which have rattled global markets and stoked fears of a recession. However, China’s denial of any current negotiations has left investors uncertain, torn between hope for a breakthrough and concerns that tensions could escalate further.

“There remains a lot of hope and hype about trade deals, and this might prevent a sharp slump in the S&P 500 in the immediate term, but the index is at the top end of its trading range and shouldn’t be chased beyond around 5,500,” noted Adam Crisafulli of Vital Knowledge in a morning note to clients.

Key Earnings Ahead: Apple, Microsoft, Amazon, and Meta in Focus

Investors are now turning their attention to earnings from several members of the so-called “Magnificent Seven” megacap stocks, including Apple Inc. (AAPL), Microsoft Corporation (MSFT), Amazon.com Inc. (AMZN), and Meta Platforms Inc. (META). These reports are expected to offer critical insight into corporate resilience amid ongoing tariff tensions and rising concerns about AI-driven capital expenditures.

Microsoft and Meta are set to release their quarterly results on Wednesday, while Apple and Amazon will report on Thursday.

“The Q1 earnings season—and Q1 economic data—have been decent so far, but this is partly because the full effects of tariffs have yet to materialize. That will soon change,” Crisafulli added.

Other major companies set to report this week include Visa Inc. (V), Coca-Cola Co. (KO), and Caterpillar Inc. (CAT), providing a broader snapshot of U.S. economic health across key sectors.