U.S. Stock Futures Drop Amid Trade Tensions, Earnings Awaited

U.S. stock futures fell after an initial rally, reversing gains fueled by optimism over easing U.S.-China trade tensions and strong tech earnings, particularly from Alphabet. Market sentiment soured following President Trump's interview with Time magazine, where he described maintaining tariffs as high as 50% on foreign imports for another year as a 'total victory,' and claimed numerous trade deals, despite conflicting reports from U.S. and Chinese officials about ongoing tariff negotiations. Confusion over the status of U.S.-China talks, as both sides issued contradictory statements, contributed to market volatility and uncertainty. This downturn came as investors shift focus to upcoming earnings reports from major tech firms such as Apple, Microsoft, Amazon, and Meta, which are expected to provide further insight into corporate resilience amid ongoing trade tensions. Treasury yields remained low as investors sought safety, while the dollar strengthened and gold prices declined. Overall, concerns about persistent tariffs and unclear trade negotiations weighed heavily on investor sentiment, overshadowing positive earnings news.