Big Tech Earnings and Economic Indicators Awaited, US Stock Market Opens Flat

Apple and Tesla Fluctuate Amid US-China Trade Agreement Uncertainty

Nvidia Falls on News of Huawei's High-Performance AI Chip

On the first day of the week, the 28th (local time), when the earnings announcements of major tech companies and key economic indicators are scheduled, the US stock market opened higher.

At 10 a.m. Eastern Standard Time, the S&P 500 was fluctuating around 5,530 points, and the Dow Jones Industrial Average rose 0.3%. The Nasdaq Composite Index fell 0.2%.

The 10-year Treasury yield rose 4 basis points (1bp=0.01%) to 4.27%.

Tesla, which surged 9% last Friday, started higher but trimmed gains to trade up 0.8% at $287. Apple and Meta Platforms, which will announce earnings this week, rose 0.1% and 0.5%, respectively. Meanwhile, Microsoft was trading down 0.4%. Nvidia, whose export of China-specific chips was blocked, fell 2.5% on news that Huawei developed a chip close to Nvidia's H100 performance and supplied it to Chinese companies.

Bitcoin rose 0.5% to trade at $94,748.09. Spot gold fell 0.7% to $3,295.66 per ounce.

On this day, Treasury Secretary Scott Bessent did not clarify the US stance on a trade agreement with China in an interview with CNBC but emphasized that China, not the US, should be responsible. He also hinted that trade negotiations with other partners are progressing and that an agreement with India could be one of the first.

Jonathan Miller, an economist at Barclays, said in a recent report, "There are signs that the US-China trade conflict is somewhat easing." However, he stated, "It remains skeptical whether the US can show enough momentum in trade negotiations to avoid a recession."

This week, more than 180 S&P 500 companies are scheduled to announce earnings. In addition to the four big tech companies—Amazon, Apple, Meta Platforms, and Microsoft—financial, consumer staples, and healthcare stocks such as Visa, Coca-Cola, Eli Lilly, and Berkshire Hathaway will also announce earnings.

According to FactSet data, the earnings of S&P 500 companies announced so far are generally good. More than 73% of companies reported earnings that exceeded Wall Street expectations. This is slightly lower than the five-year average of 77%. Nevertheless, with companies presenting uncertain earnings forecasts due to Trump tariffs, Wall Street is lowering expectations for second-quarter and annual earnings this year.

This week, key indicators related to inflation and economic growth, including the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE), and non-farm payroll data, are expected to be released.

Guest Reporter Kim Jung-ah kja@hankyung.com