Dow Jones futures rise in response to positive developments on trade negotiations

• Dow Jones futures edged higher as market sentiment improves over positive trade developments.
• Trump announced a trade agreement with Japan that imposes a 15% tariff on Japanese exports to the US.
• Traders will likely observe Wednesday's major earnings releases from megacap techs.

Dow Jones Futures rises ahead of the US market opening on Wednesday, trading around 44,850, up by 0.32%, during European hours. Meanwhile, S&P 500 Futures are up by 0.28% to 6,360, and Nasdaq 100 Futures appreciate 0.13% to trade near 23,250.

US stock index futures gain ground as market sentiment improves following developments on trade deals. United States (US) President Donald Trump announced a trade deal with Japan that includes a 15% tariff on Japanese exports to the US. As part of the agreement, Japan will invest $550 billion in the US and open its markets to key American products.

President Trump said during a meeting with the Philippines President Bongbong Marcos on Tuesday that "I think we will get a trade deal; we're close to a trade deal." I don't mind if the Philippines gets along with China, he added. Meanwhile, US Treasury Secretary Scott Bessent stated that American and Chinese officials are set to meet in Stockholm next week for a third round of high-level talks.

The US stock markets appreciated on Tuesday's regular session, with the Dow Jones advancing 0.4% and the S&P 500 rising 0.06%. However, the Nasdaq Composite declined 0.39%, driven by a decline in chipmakers.

Nvidia dropped 2.4% and Broadcom declined 3.3% following reports that SoftBank and OpenAI's ambitious AI joint venture has hit a pause. Market attention has now shifted to Wednesday's major earnings releases from megacap tech names Tesla and Alphabet, with updates also expected from Hasbro, Chipotle, and Mattel.

Additionally, market sentiment dampened amid disappointing earnings results. Lockheed Martin declined 10.8% and Philip Morris fell 8.2% following weaker-than-expected reports, while General Motors slid 8% after warning of steeper profit impacts stemming from tariffs.