Stock futures drop as investors react to earnings reports from Apple and Amazon

In the Asia-Pacific region, markets saw an increase following China's announcement to evaluate potential trade talks with the United States. This optimism extended from Wall Street's significant overnight gains, driven by positive earnings reports that alleviated fears regarding a slowdown in artificial intelligence advancements amidst the ongoing macroeconomic uncertainties. Australia's S&P/ASX 200 index rose by 0.5%, while South Korea's Kosdaq experienced a modest increase of 0.60%. However, futures for Hong Kong's Hang Seng Index suggested a weaker opening compared to its previous close. Meanwhile, in the U.S., stock futures declined as Wall Street processed disappointing earnings from both Apple and Amazon, two companies part of the so-called 'Magnificent Seven'. Notably, Apple's stock fell over 4% due to revenue from its Services division falling short of analysts' expectations, and Amazon's shares also dropped more than 2% despite delivering better-than-expected first-quarter results, combined with cautious guidance amidst concerns over President Trump's tariffs. The broader U.S. stock market closed positively, with the S&P 500 and Nasdaq Composite gaining 0.63% and 1.52% respectively, reflecting resilience in the face of economic challenges. In addition, Bitcoin surged closer to the $100,000 mark after reversing earlier losses, further indicating the volatile nature of financial assets in this climate. Japan reported a slight rise in unemployment to 2.5%, surpassing predictions and illustrating growing concerns regarding the impact of U.S. tariffs on corporate performance. Furthermore, South Korea's inflation rate edged up to 2.1%, marginally above expectations, giving the Bank of Korea room to consider adjustments in its monetary policy.