Dow Jones futures dip despite the upbeat mood on the latest US trade deals

• Dow Jones futures point at a negative opening despite the upbeat market mood.
• News of an imminent trade deal with the EU has boosted hopes that the worst trade tariffs can be avoided.
• Upbeat results from Google's Alphaber boosted tech shares on Wednesday

Wall Street futures anticipate a mixed opening on Thursday, as the enthusiasm about trade deals wears off. Dow Jones futures are trading 0.30% lower at the time of writing, while S&P 500 Index futures trade 0.10% higher and the Nasdaq Index advances 0.3%, pointing to new record highs.

In the trade front, US negotiators are finally reporting some advances on deals with major partners, easing concerns about full-blown trade wars and boosting investors' appetite for risk in Asia and Europe.

News reports that the US is closing in on a deal with the Eurozone are keeping market sentiment buoyed on Thursday. This agreement would include 15% tariffs, with exceptions for certain products, and comes after a similar agreement with Japan was reached on Wednesday. Beyond that, US Treasury Secretary Bessent affirmed that a second round of trade talks with China would take place next week, contributing to the overall positive sentiment.

Upbeat quarterly earnings have boosted Wall Street Indexes this week

Second-quarter earnings are on the way, bringing positive news so far. About 23% of the S&P 500 companies have reported their results, with 85% of them beating expectations, according to data by LSEG.

On Wednesday, Google's Alphabet beat expectations after the closing bell, boosted by AI spending. On the other hand, Tesla reported a 23% decline in earnings and signalled harsh quarters ahead.

On the macroeconomic front, US Preliminary PMIs are expected to show that business activity expanded moderately in July. Jobless claims are expected to have grown moderately in the previous week.

Meanwhile, Trump is expected to visit the Federal Reserve on Thursday. With July's monetary policy meeting around the corner, rumour has it that the President would be seeking to increase pressure on the bank to cut interest rates. The market, however, is practically discarding a rate cut at the next meeting.