S&P500: Wall Street Cools After Rally as GM and Honeywell Move on Tariff, Earnings News

Wall Street Pauses After Rally as Traders Weigh Earnings, Tariff Fallout

S&P 500 futures held steady Tuesday morning following five consecutive days of gains for the index, as investors digested a mixed set of corporate earnings and cautious forward guidance amid ongoing tariff concerns. Nasdaq 100 futures slipped 0.1%, while Dow futures rose 0.3%, buoyed by upbeat corporate results and a rotation into industrials.

Are Tariffs Starting to Weigh on Outlooks?

General Motors shares dropped about 2% premarket, despite posting stronger-than-expected quarterly earnings. The automaker paused additional buybacks and flagged uncertainty tied to recently proposed tariffs, prompting it to reassess its full-year forecast. This cautious tone echoes moves from American Airlines and Skechers last week, both of which pulled their outlooks due to economic headwinds.

Pfizer also cited tariff uncertainty as a variable it couldn’t yet quantify, even as it beat profit estimates. Leggett & Platt, in contrast, rose over 15% after signaling potential tariff-related benefits, though management warned about the broader inflationary risks.

Which Stocks Are Leading Pre-Bell Moves?

Honeywell climbed nearly 4% after beating on both revenue and profit. The firm slightly lifted its full-year earnings range to $10.20–$10.50 per share and said the updated guidance accounts for tariff effects and macro uncertainty. Royal Caribbean popped 5.4% after strong quarterly numbers and raised guidance on record WAVE season bookings.

Hims & Hers skyrocketed over 39% as Novo Nordisk announced it would distribute Wegovy through the telehealth platform. SoFi surged 6% after posting a revenue and EBITDA beat, while UPS gained 2% following a cost-cutting announcement and better-than-expected results.

Spotify slid 5% on a minor profit miss, while Regeneron fell 7.5% after both earnings and revenue missed expectations. Waste Management dropped 2% as it reported soft top-line results.

How Are Broader Markets Positioning Ahead of Key Tech Earnings?

The S&P 500 edged up less than 0.1% Monday, while the Dow rose 0.3% and the Nasdaq fell 0.1%, each swinging sharply intraday. Roughly 73% of S&P 500 firms that have reported so far this season have exceeded earnings expectations, slightly below the five-year average of 77%.

With one-third of S&P companies set to report this week, including Microsoft, Meta, Apple, and Amazon, investors remain focused on whether tech can sustain leadership.

What Should Traders Watch Next?

The immediate focus is on Big Tech earnings midweek, especially given their heavy weighting in the indexes. Traders are also keeping a close eye on tariff-related headlines, which could prompt further revisions to corporate guidance.

Overall, the market appears to be consolidating near highs, with dip-buying still evident, but sentiment may shift quickly based on results and political developments.

More Information in our Economic Calendar.