US markets began the week on a mixed note, with Asian shares easing and Wall Street futures ticking up before the bell on Monday ahead of the first wave of second-quarter earnings reports this week.

Markets and Earnings

Investors returning from the US July 4 holiday and 250th anniversary celebrations will be digesting those earnings alongside a softer-than-expected US jobs report last week, which prompted markets to scale back rate-hike bets and helped propel global stocks higher on the week.

Tech stocks and the health of the AI boom will remain top of mind for investors this week as trading gets back to normal after the US holiday. Chip stocks, which soared in the first half of the year even as the so-called Magnificent Seven lagged, were swept up in last week’s tech selloff and could face a further test this week.

The chip-heavy KOSPI index eased 0.5% on Monday ahead of Samsung Electronics’ earnings on Tuesday. The South Korean tech giant is expected to post an 18-fold jump in profit on soaring demand for AI memory, though enormous bonus payouts could weigh on earnings.

The earnings season will kick off this week, with S&P 500 companies expected to deliver robust growth of more than 24% in the second quarter. Among the first major companies to report stateside later in the week will be Delta Air Lines and PepsiCo, both of which could shed light on the health of the US consumer.

Minutes from the Fed’s hawkish June meeting, due out this Wednesday, could offer more clues on policymakers’ thinking, though these comments will largely predate the recent ramp-up in oil flows through the Strait of Hormuz.

Oil prices slid further to under $72 a barrel on Monday morning. Prices were little changed last week as concerns about supply continued to fade amid returning flows through Hormuz, and that picture has been helped by the latest production quota boost by OPEC+, announced on Sunday.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.