Asian Markets Tumble Following Wall Street's Tech-Led Decline

Asian Markets Track Wall St Losses After Mixed Tech Earnings

Asian markets fell on Wednesday following a mixed batch of US earnings that did little to boost enthusiasm as investors look for the tech sector to continue filing blockbuster profits after pumping billions into artificial intelligence. Traders are also shifting cautiously as they weigh the outlook for US policy post-election, with Democrat chances boosted by the expected nomination of Kamala Harris to replace Joe Biden to battle Donald Trump in November. Equities have largely been boosted this year by growing expectations that the Federal Reserve will cut interest rates thanks to slowing inflation and a softening of the labour market, officials have indicated lately they are open to a move soon. The prospect of a more welcoming borrowing environment has heavily benefited tech firms, particularly as they have invested massively in AI, seeing it as the next big money-spinner. And profits have not disappointed in most cases, helping push their valuations ever higher, with chip titan Nvidia piling on around 150 percent for the year to date. However, hopes for this earnings cycle were dented slightly Tuesday by news that profits at electric car giant Tesla fell 45 percent in the second quarter owing to price cuts and aggressive AI investment. And payments behemoth Visa's reported revenue for its fiscal third quarter came in below estimates, though a forecast-beating report from Google-parent Alphabet did provide some support. Alphabet and Tesla are part of the so-called "Magnificent Seven" tech kings who have been key to driving gains in markets that have pushed Wall Street to multiple record highs in 2024. The others -- Apple, Amazon, Facebook-parent Meta, Microsoft and Nvidia -- are due to report over the next few weeks. "The kickoff of earnings season for the 'Magnificent Seven' didn't exactly call for a ticker-tape parade on Wall Street, leaving mega-cap sentiment teetering on a shaky high bar," said Stephen Innes in his Dark Side Of The Boom commentary. All three main indexes on Wall Street ended slightly lower, and Asia mostly followed suit. Tokyo, Shanghai, Hong Kong, Sydney, Singapore and Jakarta all slipped, though Seoul and Wellington edged up. Manila and Taipei were closed because of a typhoon. Investors are also awaiting the release of key US economic growth data Thursday and the latest reading on personal consumption expenditure -- the Fed's favoured gauge of inflation -- which could play a role in decision-makers' thinking ahead of their next meeting. But Innes warned: "Markets are wagering that these indicators will give the Fed the green light to take it easy in September. However, any hiccup in the cooling inflation trend could add a plot twist to this Fed soap opera." Still, PGIM Fixed Income analysts said in a note: "We expect at least one 25-basis-point cut in 2024 with mid-December appearing as the most likely meeting for that decision. "That said, the Fed could implement another cut in the second half of 2024 if given the opportunity. If the Fed is hindered from cutting rates this year, it could shift those cuts into 2025, and we see a total of 150 basis points in Fed rate cuts through next year." West Texas Intermediate: UP 0.4 percent at $77.27 per barrel

Asian Markets Track Tech-led Plunge On Wall St, Yen Extends Gains

Asian markets tumbled Thursday after a tech-fuelled sell-off saw Wall Street tank, as disappointing earnings caused traders to panic that a months-long rally in the sector may have been overdone. Tokyo's Nikkei led the retreat in equities, with a stronger yen adding to the downward pressure on exporters, while technology giants across the region were deep in the red. Global stocks have pushed ever higher this year -- with New York's three main indexes hitting multiple records -- with tech titans such as Alphabet and chip makers such as Nvidia and TSMC boosted by an explosion of interest in all things linked to artificial intelligence. The rallies have been helped by blockbuster profits and upbeat outlooks, causing investors to pile more cash in owing to a fear of missing out. However, with valuations pushing to dizzying heights, analysts have been warning about retreat, and Tuesday's earnings from Tesla and Google-parent Alphabet provided a selling opportunity. Tesla said profits fell 45 percent in the second quarter owing to price cuts and aggressive AI investment and while Alphabet beat forecasts, results from YouTube were less upbeat. The two firms are part of the so-called "Magnificent Seven" tech kings who have been key to the driving gains in markets this year. Tesla shed 12.3 percent and Alphabet gave up five percent. All three main indexes on Wall Street tumbled, with the Nasdaq shedding more than three percent and the S&P 500 down more than two percent in its worst day since December 2022. "Investors are now facing the pressing question: How long will it take for these massive investments by hyperscalers to start delivering over-the-top results?" asked analyst Stephen Innes. "Patience is becoming the new flag-bearer for recent tech stockholders as they wait for these tech bets to pay off," he added in his Dark Side Of The Boom newsletter. Asia followed suit, with tech firms among the big losers -- Seoul's SK Hynix dived more than eight percent at one point despite strong earnings, while in Tokyo Sony was off more than four percent and SoftBank more than seven percent. Hong Kong and Shanghai fell even after a surprise cut in a key rate by the Chinese central bank. Sydney, Seoul, Singapore, Wellington, Manila and Jakarta were also well in the red. The Nikkei in Tokyo tumbled more than three percent at one point. Hideyuki Suzuki, senior analyst at SBI Securities, told AFP that "falls in the US tech sector -- especially a plunge in Tesla shares, and disappointing Alphabet earnings -- as well as a stronger yen weighed on the market." The boom in electric vehicle sales is slowing, and "excessive expectations for AI and other technologies are being corrected," he said. However, he added that "it's not that economic fundamentals are worsening, so shares may rebound after" Japanese and US central bank meetings. "The yen is higher on speculation that the Bank of Japan may hike interest rates" at its meeting next week, but views are divided, Suzuki said. The yen extended a rally against the dollar that has been underway in recent weeks, having hit a nearly four-decade low near 162 at the start of this month. The Japanese unit strengthened to as much as 152.65 per dollar at one point, with Innes saying "traders seem to have shifted from squaring short yen positions to taking long yen bets" ahead of the meeting. Market watchers are divided on whether Japan's central bank will raise interest rates again as officials look to normalise their longstanding ultra-loose monetary policy. West Texas Intermediate: DOWN 0.4 percent at $77.30 per barrel

Asian markets track Wall St losses after mixed tech earnings

Asian markets fell on Wednesday following a mixed batch of US earnings that did little to boost enthusiasm as investors look for the tech sector to continue filing blockbuster profits after pumping billions into artificial intelligence. Traders are also shifting cautiously as they weigh the outlook for US policy post-election, with Democrat chances boosted by the expected nomination of Kamala Harris to replace Joe Biden to battle Donald Trump in November. Equities have largely been boosted this year by growing expectations that the Federal Reserve will cut interest rates thanks to slowing inflation and a softening of the labour market, officials have indicated lately they are open to a move soon. The prospect of a more welcoming borrowing environment has heavily benefited tech firms, particularly as they have invested massively in AI, seeing it as the next big money-spinner. And profits have not disappointed in most cases, helping push their valuations ever higher, with chip titan Nvidia piling on around 150 percent for the year to date. However, hopes for this earnings cycle were dented slightly Tuesday by news that profits at electric car giant Tesla fell 45 percent in the second quarter owing to price cuts and aggressive AI investment. And payments behemoth Visa's reported revenue for its fiscal third quarter came in below estimates, though a forecast-beating report from Google-parent Alphabet did provide some support. Alphabet and Tesla are part of the so-called "Magnificent Seven" tech kings who have been key to driving gains in markets that have pushed Wall Street to multiple record highs in 2024. The others -- Apple, Amazon, Facebook-parent Meta, Microsoft and Nvidia -- are due to report over the next few weeks. "The kickoff of earnings season for the 'Magnificent Seven' didn't exactly call for a ticker-tape parade on Wall Street, leaving mega-cap sentiment teetering on a shaky high bar," said Stephen Innes in his Dark Side Of The Boom commentary. All three main indexes on Wall Street ended slightly lower, and Asia mostly followed suit. Tokyo, Shanghai, Hong Kong, Sydney, Singapore and Jakarta all slipped, though Seoul and Wellington edged up. Manila and Taipei were closed because of a typhoon. Investors are also awaiting the release of key US economic growth data Thursday and the latest reading on personal consumption expenditure -- the Fed's favoured gauge of inflation -- which could play a role in decision-makers' thinking ahead of their next meeting. But Innes warned: "Markets are wagering that these indicators will give the Fed the green light to take it easy in September. However, any hiccup in the cooling inflation trend could add a plot twist to this Fed soap opera." Still, PGIM Fixed Income analysts said in a note: "We expect at least one 25-basis-point cut in 2024 with mid-December appearing as the most likely meeting for that decision. "That said, the Fed could implement another cut in the second half of 2024 if given the opportunity. If the Fed is hindered from cutting rates this year, it could shift those cuts into 2025, and we see a total of 150 basis points in Fed rate cuts through next year." - Key figures around 0230 GMT - Tokyo - Nikkei 225: DOWN 0.2 percent at 39,508.84 (break) Hong Kong - Hang Seng Index: DOWN 0.3 percent at 17,414.96 Shanghai - Composite: DOWN 0.2 percent at 2,910.17 Euro/dollar: DOWN at $1.0845 from $1.0855 on Tuesday Pound/dollar: DOWN at $1.2895 from $1.2907 Dollar/yen: DOWN at 155.30 yen from 155.62 yen Euro/pound: UP at 84.11 pence at 84.08 pence West Texas Intermediate: UP 0.4 percent at $77.27 per barrel Brent North Sea Crude: UP 0.4 percent at $81.34 per barrel New York - Dow: DOWN 0.1 percent at 40,358.09 points (close) London - FTSE 100: DOWN 0.4 percent at 8,167.37 (close)

Asian markets track Wall St losses after mixed tech earnings

Hong Kong (AFP) - Asian markets fell on Wednesday following a mixed batch of US earnings that did little to boost enthusiasm as investors look for the tech sector to continue filing blockbuster profits after pumping billions into artificial intelligence. Traders are also shifting cautiously as they weigh the outlook for US policy post-election, with Democrat chances boosted by the expected nomination of Kamala Harris to replace Joe Biden to battle Donald Trump in November. Equities have largely been boosted this year by growing expectations that the Federal Reserve will cut interest rates thanks to slowing inflation and a softening of the labour market, officials have indicated lately they are open to a move soon. The prospect of a more welcoming borrowing environment has heavily benefited tech firms, particularly as they have invested massively in AI, seeing it as the next big money-spinner. And profits have not disappointed in most cases, helping push their valuations ever higher, with chip titan Nvidia piling on around 150 percent for the year to date. However, hopes for this earnings cycle were dented slightly Tuesday by news that profits at electric car giant Tesla fell 45 percent in the second quarter owing to price cuts and aggressive AI investment. And payments behemoth Visa's reported revenue for its fiscal third quarter came in below estimates, though a forecast-beating report from Google-parent Alphabet did provide some support. Alphabet and Tesla are part of the so-called "Magnificent Seven" tech kings who have been key to driving gains in markets that have pushed Wall Street to multiple record highs in 2024. The others -- Apple, Amazon, Facebook-parent Meta, Microsoft and Nvidia -- are due to report over the next few weeks. "The kickoff of earnings season for the 'Magnificent Seven' didn't exactly call for a ticker-tape parade on Wall Street, leaving mega-cap sentiment teetering on a shaky high bar," said Stephen Innes in his Dark Side Of The Boom commentary. All three main indexes on Wall Street ended slightly lower, and Asia mostly followed suit. Tokyo, Shanghai, Hong Kong, Sydney, Singapore and Jakarta all slipped, though Seoul and Wellington edged up. Manila and Taipei were closed because of a typhoon. Investors are also awaiting the release of key US economic growth data Thursday and the latest reading on personal consumption expenditure -- the Fed's favoured gauge of inflation -- which could play a role in decision-makers' thinking ahead of their next meeting. But Innes warned: "Markets are wagering that these indicators will give the Fed the green light to take it easy in September. However, any hiccup in the cooling inflation trend could add a plot twist to this Fed soap opera." Still, PGIM Fixed Income analysts said in a note: "We expect at least one 25-basis-point cut in 2024 with mid-December appearing as the most likely meeting for that decision. "That said, the Fed could implement another cut in the second half of 2024 if given the opportunity. If the Fed is hindered from cutting rates this year, it could shift those cuts into 2025, and we see a total of 150 basis points in Fed rate cuts through next year." West Texas Intermediate: UP 0.4 percent at $77.27 per barrel

Asian stocks tumble as tech rout spills over; China shares test 5-mth lows By Investing.com

Investing.com-- Asian stocks fell sharply on Thursday, tracking an overnight rout on Wall Street as weak earnings from major technology companies drove outsized losses in the sector. Weak sentiment towards China also remained in play, with the country's stock benchmarks testing their lowest levels since February. Wall Street indexes tumbled in overnight trade, with the NASDAQ Composite plummeting over 3% as middling earnings from Alphabet Inc (NASDAQ:GOOGL) and Tesla Inc (NASDAQ:TSLA) sparked an extended rout in tech. But U.S. stock index futures rose marginally in Asian trade, suggesting that Wall Street may at least be stabilizing from recent losses. Focus was also on upcoming gross domestic product and PCE price index data due in the coming days. Alphabet headlined these losses, even as the firm's quarterly earnings beat consensus. But signs of slowing advertising revenue and increased costs, especially on AI, drove concerns over other tech earnings reflecting similar trends. The tech sector was already nursing steep losses over the past week, as it was slammed by profit-taking after a major melt-up over the past year. Expectations of interest rate cuts, specifically in the U.S., also sparked a rotation into more economically sensitive sectors. Broader Asian markets also slid, as risk appetite was hammered by the tech rout. Australia's ASX 200 index fell 1.2%, while Japan's broader TOPIX index lost 2.2%. Both indexes had surged to record highs earlier in July. Futures for India's Nifty 50 index fell 0.3%, pointing to a negative open as the index also grappled with a high degree of profit-taking in recent sessions. The Nifty and India's BSE Sensex 30 had notched a series of record peaks in July, but were now set to pull back substantially from those levels. China's Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell relatively less than their Asian peers, owing to lower tech weightage in both indexes. But they were both down around 0.7%, and were also at their weakest levels since late-February. Chinese markets were nursing steep losses as a swathe of weak economic readings battered sentiment towards the country. The Chinese economy grew less than expected in the second quarter. Surprise interest rate cuts in the country also did little to improve sentiment. Reports on Thursday showed that several state-owned Chinese banks had lowered borrowing costs following a surprise reduction in the loan prime rate earlier this week.

Asian stocks drop as tech tracks weak US earnings; China remains on backfoot By Investing.com

Investing.com-- Most Asian stocks fell on Wednesday, weighed by renewed losses in the technology sector as key overnight earnings in the U.S. underwhelmed, while sentiment towards China also showed few signs of improving. Regional stocks took a weak lead-in from Wall Street, especially a fall in U.S. stock index futures following underwhelming earnings from heavyweights Tesla Inc (NASDAQ:TSLA) and Alphabet Inc (NASDAQ:GOOGL). This sparked extended selling in technology stocks, which came as the sector nursed steep losses through the past week. Profit-taking and a rotation into more economically sensitive sectors battered global tech valuations over the past year. Japan's Nikkei 225 fell 0.5%, while South Korea's KOSPI shed 0.1%, as losses in tech stocks weighed. Hong Kong's Hang Seng index was among the worst performers for the day, losing 0.6% as major electric vehicle stocks fell in tandem with Tesla. BYD (SZ:002594) Co Ltd (HK:1211), Li Auto (NASDAQ:LI) Inc (HK:2015) and Xpeng (NYSE:XPEV) Inc (HK:9868) slid between 2% and 4.3%, tracking a nearly 8% slide in Tesla after the firm's second-quarter profit missed expectations. Tesla was seen grappling with softening sales and mounting expenses as it diverted more resources towards artificial intelligence and self-driving technology. Alphabet's earnings also provided weak cues to Asian markets. While the internet giant did beat expectations with its earnings, slower growth in ad revenue and increased expenditure on AI heralded a similar trend for regional tech giants, who are due to report in the coming weeks. Alphabet's shares fell 2% in aftermarket trade. China's Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.8% and 0.6%, respectively, hitting an over two-week low. Chinese markets saw an extended rout in recent sessions as sentiment towards the country soured in the wake of disappointing economic readings, especially data that showed slower-than-expected growth in the second quarter. This was coupled with an underwhelming interest rate cut by the People's Bank, while the Third Plenum of the Chinese Communist Party also yielded few cues on more stimulus measures. Uncertainty over the U.S. presidential race also weighed on sentiment towards China, as investors speculated over just what a change in U.S. administration will entail for Washington's stance towards the country. Broader Asian markets moved in a flat-to-low range. Australia's ASX 200 fell slightly as purchasing managers index data showed manufacturing and services activity in the country likely slowed in July. Japan's TOPIX index fell 0.4%, with losses limited by some signs of improvement in the Japanese economy. While PMI data showed a contraction in manufacturing activity, the services sector rebounded sharply into expansion in July, buoying overall business activity. Futures for India's Nifty 50 index fell 0.1%, with the index facing some weakness as investors balked at the increased capital gains taxes outlined in the government's 2024 budget. But overall, the budget appeared to be more geared towards reducing India's fiscal deficit and reigning in government spending.

Asian stocks pressured after big tech disappoints: Markets wrap

Asian equities fall as tech giants post underwhelming earnings. Taipei stock market closes due to typhoon. Concerns over US election impact on market. Investors cautious amid economic troubles and geopolitical risks in China and Japan. Big Tech faces tough comparisons with previous stellar earnings cycles.Asian equities declined, following an unimpressive start to the earnings reports from the "Magnificent Seven" megacap technology companies. Stocks in Japan, South Korea and Australia declined, following US shares as traders assessed earnings after the closing bell from Corporate America's largest businesses including Tesla Inc. and Alphabet Inc. Taipei's bourse will be closed due to a typhoon. Investors were looking to tech earnings to maintain a rally that drove US and global stocks to records. That failed to materialize as Alphabet Inc. retreated as the company's chief signaled patience will be needed to see concrete results from artificial-intelligence investments. Tesla fell as much as 7% after profit fell short of estimates and the electric-vehicle giant delayed its Robotaxi event to October. "Given that profit expectations are high for the 'Magnificent Seven,' these companies will have a lot to prove," said Anthony Saglimbene at Ameriprise. "At the same time, their outlooks will likely be heavily scrutinized in comparison to elevated valuations." In Asia, Typhoon Gaemi is approaching Taiwan with strong winds and heavy rain, forcing Taipei to suspend its $2.4 trillion stock market. The island will not conduct securities, currency or fixed income trading on Wednesday, according to statements from its exchange. Investors will also be watching China, where the market that has lost momentum amid economic troubles and geopolitical risks. On Tuesday, the onshore benchmark CSI 300 Index closed 2.1% lower, the biggest decline in six months, as a lack of major policy support following the Third Plenum reinforced bearish sentiment. Meanwhile in Japan, there's growing political frustration over the central bank's cautious stance. Its extremely low rates have kept downward pressure on the yen while inflation continues to outpace the central bank's target and wage growth. The Bank of Japan should more clearly show its intention to normalize monetary policy, according to ruling party heavyweight Toshimitsu Motegi, in remarks a week before the BOJ meets to decide whether to raise interest rates. Upbeat earnings on Wall Street would be a much-needed driver for equities after a roaring first half of the year. The market is facing pressure heading into a seasonally weak period, with volatility likely to be heightened by the US presidential election. But in addition to the woes for Big Tech, United Parcel Service Inc. suffered its worst plunge ever on a profit miss. The five biggest US technology companies are facing tough comparisons with stellar earnings cycles of the past year. Profits for the group are projected to rise 29% in the second quarter from the same period a year earlier, data compiled by Bloomberg Intelligence show. While still strong, that's down from the past three quarters and, to investors, the stock reaction to earnings remains one of the biggest wild cards. "The fact that these stocks have experienced weakness leading up to their earnings reports isn't necessarily such a bad thing as rallies into earnings would only have the potential to set the bar unrealistically high," said Bespoke Investment Group. "It doesn't take a gymnast to know that the lower the bar, the easier it is to get over it." While investors are concerned about a sustained selloff in US technology megacaps, Barclays Plc strategists say a robust earnings outlook means the cohort is still attractive after the recent rout. The team led by Venu Krishna raised its year-end target for the S&P 500 Index to 5,600 points from 5,300, citing solid profit expectations for big tech. "While our valuation assumption for big tech is high, growth-adjusted multiples are reasonable and we expect the group to earn into its valuations," they said. Investors may also continue to parse the impact of President Joe Biden halting his bid for re-election. "Sector impacts related to Republican or Democratic control on these policy issues are likely to look different in the future relative to the past," said Lauren Goodwin, economist and chief market strategist at New York Life Investments. "For most investors, the most powerful strategy for election years is simple: stay diversified rather than chase tactical bets, especially before the likelihood of real policy change is known." US two-year yields fell after a solid $69 billion auction -- which underscored market bets on rate cuts. Treasury note futures retreated as investors await debt auctions and US manufacturing PMI. Oil slumped amid algorithmic selling and low summer liquidity.

MORNING BID ASIA-Big tech in focus, Harris neutralizes Trump's lead in poll

NEW YORK, July 24 (Reuters) - A look at the day ahead in Asian markets by Alden Bentley Markets were subdued ahead of second quarter earnings from Alphabet and Tesla released after the close of regular trade on Tuesday. The first of the market-leading mega caps to report left a mixed picture for after-hours trade with scope to spill across time zones on Wednesday. Shares of both companies fell despite reporting higher-than-expected revenue. Other than earnings there is not much on the radar, economic indicator- wise, until Thursday's advance U.S. second quarter GDP and Friday's June Personal Consumption Expenditures Price Index, which markets are betting will smooth the way for a Fed easing in September. That leaves politics. With the new U.S. election landscape, markets are preparing for greater volatility, although there was little sign of it Tuesday. Vice President Kamala Harris has all but sewed up the nomination as the Democratic presidential candidate to face Republican Donald Trump on Nov. 5, after President Joe Biden withdrew from the race on Sunday. Senate Majority Leader Chuck Schumer and House of Representatives Minority Leader Hakeem Jeffries supported Harris's bid in the election and a majority of party delegates have committed to her. In a Reuters/Ipsos national poll conducted Monday and Tuesday, Harris led Trump 44% to 42%, a difference within the 3-percentage-point margin of error. Harris and Trump were tied at 44% in a July 15-16 poll, and Trump led by one percentage point in a July 1-2 poll, both within the same margin of error. While the CBOE's VIX Volatility Index fell back to near 14.5 on Tuesday it was at a near two-month high above 17 two days ago amid caution ahead of the vote in what has already been one of the most dramatic election years in history. Whoever gets elected is bound to take a tough line with China on trade and Taiwan. It's not clear what will put a floor under Chinese stocks, which posted their biggest one-day slide in six months on Tuesday, after Beijing's aggressive stimulus measures post Party Plenum failed to shore up confidence. Meanwhile, Japan's Nikkei .225 is just off five straight down days in part due to the weak yen. The currency rose to 155.615 per dollar by late U.S. trade after a senior ruling party official called for the BOJ to normalize monetary policy and keep interest rates steady. Taiwan's stock market shrugged off those losses and is Asia's best performer this year, thanks in large part to TSMC , Asia's most valuable listed company, which rose more than 4% Tuesday. But concerns remain over Washington's likely curbs on semiconductor sales to China. Four of the five remaining Magnificent 7 mega caps - Meta , Microsoft, Amazon and Apple - report next week. Investors must wait until later in August for AI super-mega Nvidia's numbers. Here are key developments that could provide more direction to markets on Wednesday:

Futures steady as investors parse earnings; tech results eyed

With investors returning to megacap growth stocks on Monday, the S&P 500 and the Nasdaq logged their biggest one-day gain in more than a month Wall Street futures were little changed on Tuesday amid a flurry of mixed corporate earnings, as investor focus turned to Big Tech results scheduled later in the day to gauge if the market's recent record-breaking rally has momentum to spare. With investors returning to megacap growth stocks on Monday, the S&P 500 and the Nasdaq logged their biggest one-day gain in more than a month, snapping a three-day losing streak triggered by investors exiting megacap tech stocks in favor of underperforming sectors. Attention now turns to results from tech behemoths, which will be key to determine whether 2024's record rally can be sustained as investors assess whether U.S. stocks are overvalued, or have more room to rise. Alphabet and Tesla, two of the so-called Magnificent Seven companies, are set to report quarterly results after markets close. In a largely mixed premarket session for the group, their shares were up 0.3% and 1.2%, respectively, "The consensus seems to be for encouraging figures later, with surveys suggesting investors are expecting earnings results, (not necessarily lower rates from the Fed), to drive the next leg in the equity rally," analysts at ING said in a note. "On a total return basis, the Magnificent Seven has lost close to 8% this month, tonight's release therefore will have a big say in whether the rally resumes." Amid a slew of corporate earnings, Spotify Technology leapt 13% after its second-quarter results were broadly in line with analysts' estimates, while General Motors gained 4.6% after beating forecasts for profit and revenue. United Parcel Service slumped 7.8% after missing earnings estimates on subdued package delivery demand and higher labor-contract costs. Coca-Cola rose 1.0%, while Comcast gained 2.2% after results. Of the 74 S&P 500 companies that have reported quarterly results during this earnings season, 81.1% beat expectations, according to LSEG data. At 7:12 a.m. ET, Dow e-minis were up 34 points, or 0.08%, S&P 500 e-minis were up 4 points, or 0.07%, and Nasdaq 100 e-minis were down 4.75 points, or 0.02%. Economic data scheduled for this week including the Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, will be crucial in assessing the monetary policy outlook amid the recent inflation downtrend and signs the labor market is easing. Bets of a 25-basis-point interest-rate cut by September have shot up to nearly 92%, from nearly 60% last month, according to CME's FedWatch Tool, with two rate cuts expected by the year end. Among other single movers, NXP Semiconductors slumped 7.9% after the company forecast third-quarter revenue below estimates, as it battles sluggish demand from automotive customers. Other chip stocks including ON Semiconductor, Texas Instruments and Advanced Micro Devices were also down between 0.7% and 2.5%. AI chip firm Nvidia edged 0.4% lower after logging its steepest one-day gain in nearly a month in Monday's session. Shares of Trump Media & Technology Group slipped 3.1% after a choppy session on Monday following U.S. President Joe Biden's withdrawal from the Democratic ticket and as Vice President Kamala Harris become the party's presumed nominee. (Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru; Editing by Shounak Dasgupta and Pooja Desai)