Nasdaq Index: Stock Market Direction Hinges on ‘Magnificent Seven’ Earnings

Tech Weakness Caps Nasdaq Gains as Traders Brace for Alphabet, Tesla Earnings

U.S. equity futures were mixed on Tuesday, with Nasdaq E-mini futures underperforming as megacap tech names pulled back ahead of high-stakes earnings. Traders also monitored tariff discussions and corporate results that added pressure to near-term sentiment.

Nasdaq 100 futures slipped 0.53% to 23,218.75, pulling back from Monday’s recent high of 23,367. The S&P 500 futures edged down 0.04% to 6,342.25, while Dow futures ticked up 0.17% to 44,624.

Losses in Nvidia, Amazon, Meta, and Broadcom dragged the tech-heavy Nasdaq lower, reinforcing caution before Alphabet and Tesla’s earnings after Wednesday’s close.

Is Tariff Uncertainty Pressuring Major Dow and S&P Names?

Trade headlines remained a focal point. General Motors shares tumbled nearly 7% after citing a $1.1 billion hit from tariffs in its Q2 results. RTX and Lockheed Martin also sank following lowered guidance and steep losses, respectively. With a looming August 1 deadline and slow-moving negotiations with China, India, and the EU, markets face added geopolitical stress.

S&P 500 futures remain in an uptrend, holding well above the 50-day (6,110.2) and 200-day (6,002.5) moving averages. Still, the index has struggled to extend past the recent 6,374 high, signaling short-term resistance. Tuesday’s close near 6,342 puts the index just under breakout territory.

Can the Dow Hold Gains with Defensive Stocks in Focus?

Dow futures continue to trend higher, up 17% from their April lows. Tuesday’s 44,624 level keeps the contract above its 50- and 200-day moving averages. Strong healthcare and utilities performance contributed to stability, with those sectors up 1.2% and 1.1%, respectively.

But the Dow faces a tight consolidation range between 44,000 and 45,200 as traders await fresh catalysts. Recent support has held near 43,973, suggesting a potential floor unless earnings disappoint.

Are Traders Prepping for a Post-Earnings Selloff in Nasdaq Tech?

The Nasdaq 100’s strong rally from the May low of 20,943 has now stalled near 23,367. The index remains well above its 50-day (22,207.9) and 200-day (21,379.4) levels, confirming trend strength. However, stretched valuations in names like Alphabet and Tesla could spark profit-taking if Q2 results underwhelm.

Philip Morris’ 8.2% slide after a revenue miss underscores the risk tied to high expectations this earnings season. Out of 89 S&P companies reporting so far, 78.7% have beat estimates—yet traders remain price-sensitive.

What’s the Setup Into the Fed and ‘Magnificent Seven’ Earnings?

The Fed is widely expected to hold rates steady next week, but market odds now price a 60% chance of a cut in September, per CME FedWatch. That leaves earnings and trade policy as the primary near-term catalysts.

If Alphabet and Tesla deliver, Nasdaq futures could test new highs. But with recent price action showing consolidation just under resistance, traders may favor fading rallies unless supported by strong guidance or progress on tariffs.

More Information in our Economic Calendar.