Major indices are split, although moving off of their morning lows, as mega cap weakness weighs against strength in pockets of the market . Now, investors await more Magnificent Seven earnings out after the bell,  with Apple (AAPL) and Amazon (AMZN) reporting.

The Magnificent Seven are mostly moving lower following Microsoft (MSFT), Alphabet (GOOG/L), and Meta Platforms (META) earnings. Meta Platforms is leading the way down, while Alphabet and Apple are bucking the trend and moving higher.

Six sectors are in the green, with Financials (XLF) is leading the way up, supported by solid leadership from its major banking names. Meanwhile, Consumer Discretionary (XLY) is the lagging sector, driven lower by poor earnings reactions for Chipotle Mexican Grill (CMG) and eBay (EBAY).

Trump met with Xi and rated the meeting a 12/10. The meeting resulted in trade tensions easing as fentanyl related tariffs were cut to 10% and overall US tariffs on China were reduced to 47% from 57%. In addition, China will start buying US soybeans and remove rare earth restrictions, for at least one year, while semiconductor discussions are still progressing. Furthermore, Trump will visit China in April and Xi was invited to the USA afterwards.

On the shutdown front, we are now at day 30 and betting markets are now forecasting the shutdown to last around 43 days and take the spot of the longest shutdown in US history.

Earnings Preview

Historically, Amazon has moved higher in the following week after earnings; however, recent reports have had a negative or muted reaction. Investors are closely watching the quarterly report for updates on cloud computing unit and AI, e-commerce business, and guidance on capex efficiency amid sustained infrastructure buildout.

On the other hand, Apple has seen a slightly negative move in the week following earnings. While recent reports have tended to have initial poor reactions, the latest report did buck the trend for the 1-week change. Investors are closely watching the report for updates on iPhone 16 cycle demand, Apple Intelligence adoption and ecosystem monetization, and Services growth momentum amid regulatory scrutiny.