Pre-Market Highlights: Key Things to Know Before the U.S. Market Opens
U.S. stock futures are on the rise this morning as investors react to renewed trade optimism between the U.S. and China. Meanwhile, major tech names like Apple and Amazon are under pressure following mixed earnings and guidance, while Reddit rallies on impressive quarterly results.
1. Stock Futures Climb on China Trade Hopes
Futures tied to the S&P 500 and Dow Jones Industrial Average are up about 0.4%, while Nasdaq futures edge higher by 0.2%, following strong gains in the previous session. The positive momentum comes as China signals a willingness to negotiate with the U.S. on tariff-related issues. Bitcoin trades near $97,000, gold prices are climbing, Treasury yields are steady, and oil futures are dipping slightly.
2. China Open to U.S. Trade Talks
Beijing has announced it is "evaluating" proposals from Washington to resume trade discussions, potentially easing tensions after months of escalating tariffs. China previously imposed a 125% tariff on U.S. goods in response to the U.S. administration’s 145% duties on Chinese imports. While President Trump has claimed that tariffs will be "substantially reduced," China has not confirmed such commitments yet.
3. Apple (AAPL) Slides After CEO Highlights Tariff Risks
Apple shares are down over 3% in premarket trading after CEO Tim Cook warned of a potential $900 million impact from tariffs this quarter. Despite beating earnings expectations — with revenue up 5% YoY to $95.4 billion and EPS at $1.65 — concerns remain due to Apple’s significant exposure to China-based manufacturing. Cook emphasized that new U.S. import taxes, aimed at curbing fentanyl trafficking, are also weighing on the business.
4. Amazon (AMZN) Slips After Soft Guidance
Amazon stock is slightly lower as the company offered weaker-than-expected profit guidance for Q2. Although Q1 results surpassed forecasts — with $155.7 billion in revenue and $1.59 EPS — its projected operating income of $13 billion to $17.5 billion fell short of analyst expectations, raising caution around future profitability amid rising costs.
5. Reddit (RDDT) Soars on Strong Earnings
Reddit shares are up nearly 7% premarket after the platform delivered strong Q1 results. Revenue surged over 60% to $392 million, beating consensus estimates, and net income also topped expectations. The company issued bullish Q2 guidance, with projected revenue at the midpoint of $420 million — well above Wall Street’s forecast of $394 million.
