U.S. stock index futures are signaling a positive start to the week, with major benchmarks poised to edge higher on Monday after a choppy finish to last Friday’s trading session.
The upbeat mood in pre-market activity appears to be underpinned by renewed confidence in trade negotiations, particularly between the U.S. and the European Union. Commerce Secretary Howard Lutnick struck an optimistic tone during an interview on CBS News over the weekend.
“These are the two biggest trading partners in the world, talking to each other. We’ll get a deal done,” Lutnick stated. “I am confident we’ll get a deal done.”
Despite the optimism, Lutnick emphasized the urgency of the timeline, highlighting August 1 as a pivotal date for new tariffs.
“Nothing stops countries from talking to us after August 1st, but they’re going to start paying the tariffs on August 1st,” he added.
Market participants are also gearing up for a wave of corporate earnings releases, with tech giants like Alphabet (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and Intel (NASDAQ:INTC) scheduled to report their results this week.
Friday’s trading action was largely uneventful, as stocks fluctuated within a tight range throughout the session. Early gains quickly faded, and the major indexes struggled to maintain any sustained momentum.
The final tally saw mixed results: the Nasdaq managed a modest gain of 10.01 points, or 0.1%, to close at a record high of 20,895.66. Meanwhile, the S&P 500 dipped slightly by 0.57 points to 6,296.79, and the Dow declined by 142.30 points, or 0.3%, ending at 44,342.19.
On a weekly basis, the Nasdaq rose 1.5% and the S&P 500 advanced 0.6%, while the Dow recorded a marginal loss of 0.1%.
Stocks initially rallied on the heels of encouraging U.S. economic data released Thursday, which appeared to ease concerns over the impact of ongoing trade disputes. However, enthusiasm faded quickly, and profit-taking set in following intraday record highs on the Nasdaq and S&P 500.
Netflix (NASDAQ:NFLX) weighed heavily on the market after shares tumbled 5.1%, closing at their lowest level in over a month. The selloff came despite stronger-than-expected Q2 results, as the company warned of a weaker operating margin in the second half of the year.
Other notable movers included American Express (NYSE:AXP) and 3M (NYSE:MMM), which both declined even after posting earnings that topped analyst forecasts.
Investors paid little attention to consumer sentiment data from the University of Michigan, which showed modest improvement for July. The sentiment index rose to 61.8, slightly above forecasts and reaching its highest level since February’s reading of 64.7.
Sector-wise, most areas of the market posted limited movement. However, utilities outperformed, with the Dow Jones Utilities Average gaining 1.6%, marking its highest close in more than seven months.
Brokerage names also saw solid upside, highlighted by a 1.3% advance in the NYSE Arca Securities Broker/Dealer Index. Interactive Brokers (NASDAQ:IBKR) stood out with a 7.8% jump after delivering a strong earnings report.
On the downside, biotechnology stocks were under pressure, dragging the NYSE Arca Biotechnology Index down 2.2%. Airline and oil services stocks also struggled, counterbalancing strength in other corners of the market.
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