Dow futures jump over 200 points as Trump unveils Japan trade pact; eyes on Alphabet, Tesla earnings

The announcement sent US-listed shares of Honda and Toyota soaring, with the former jumping over 11 percent and the latter up nearly 13 percent in premarket trading.

US stock futures surged on July 23 morning after President Donald Trump announced a "massive" trade agreement with Japan, sparking optimism over global trade prospects and pushing risk appetite higher.

Dow futures rose by 215 points, or 0.5 percent, while S&P 500 futures climbed 0.4 percent. Nasdaq 100 futures lagged slightly, gaining 0.1 percent, as chip stocks struggled following weak guidance from Texas Instruments.

In a late-night post on Truth Social, Trump revealed the deal includes a reciprocal 15 percent tariff on Japanese exports to the US and hinted at progress with European Union negotiations. The announcement comes days ahead of the August 1 deadline set by Trump for advancing bilateral trade talks, which had earlier stirred market anxiety due to the administration's aggressive tariff stance.

The announcement sent US-listed shares of Honda and Toyota soaring, with the former jumping over 11 percent and the latter up nearly 13 percent in premarket trading.

Wall Street Eyes Mega-Cap Tech Earnings

The rally follows Tuesday’s record close for the S&P 500, which inched up 0.06 percent, marking its 11th record close in 2025. The Dow gained nearly 180 points, while the Nasdaq Composite dipped 0.4 percent amid a pullback in semiconductor names.

Investors are now bracing for earnings reports from Alphabet and Tesla, both due after the bell. These will be the first major releases from the mega-cap tech cohort this earnings season, a group critical to market leadership in recent years.

Other big names like Chipotle Mexican Grill and Mattel are also slated to report today, adding to the busy midweek slate. So far, 86 percent of S&P 500 companies have beaten earnings expectations this quarter, according to FactSet.

Premarket action showed Texas Instruments plunging over 10 percent, after it issued a soft Q3 earnings forecast. While Q2 earnings of $1.41 per share beat expectations, the company guided for a midpoint Q3 EPS of $1.48—below the $1.50 analysts expected—raising fresh concerns around chip sector momentum.

Movers: Hasbro, Hilton, SAP

Hasbro jumped 3 percent premarket after a strong Q2 beat, reporting adjusted earnings of $1.3 per share vs. $0.78 expected. It also raised full-year guidance, citing strength in its Wizards of the Coast segment.

Hilton Worldwide dipped nearly 2 percent despite beating expectations on both revenue and EPS, as investors reacted cautiously to modest full-year guidance revisions.

SAP’s US-listed shares fell 4.2 percent after the company posted slightly below-expected Q2 revenue of €9.03 billion.

Sector Watch: Health Care Rebounds

Tuesday saw a notable rotation into health care, a laggard in 2025, with the sector jumping 1.9 percent. IQVIA surged nearly 18 percent on its biggest intraday gain since its 2013 IPO, following a strong Q2 beat. Charles River and Quest Diagnostics also rallied 9 percent and 7 percent, respectively.

What to Watch Today

Earnings: Alphabet, Tesla, Chipotle, Mattel

Economic data: Existing home sales (due later in the day)

Trade developments: Any progress on U.S.-EU discussions following the Japan deal

Asian Markets

Japan’s Nikkei rallied strongly by 3–3.5 percent, hitting a one-year high above 41,000, led by a 10–13 percent surge in automakers like Toyota and Mazda.

Hong Kong’s Hang Seng climbed 0.5–1.6 percent, while China’s CSI 300 rose about 0.3–0.5 percent, reflecting broad regional optimism.

In India, the Sensex closed up ~540 points (0.66 percent) at 82,727, and the Nifty50 rose 0.63 percent to 25,220, powered by gains in auto, metals, and financials; realty and FMCG lagged. Tata Motors, Maruti Suzuki, Mahindra & Mahindra saw notable gains. The rupee traded near Rs 86.41/USD, largely range-bound.

The S&P/ASX 200 closed up ~60 points, a +0.69 percent gain, finishing at approximately 8,737.2 — just shy of its recent record highs. The All Ordinaries also advanced 0.67 percent, ending the day near 9,001.5 Market. Markets rallied broadly—10 of 11 sectors ended in the green, led by materials (+1.3 percent), energy (+1.1 percent), and strong performances from mining giants BHP, Rio Tinto, Fortescue, plus Whitehaven Coal climbing about +6.5 percent, and Elders up around +6.2 percent.