U.S. stocks ticked higher Wednesday morning following news of a new trade deal between the U.S. and Japan and ahead of major earnings from Tesla and Alphabet.
Markets open higher on Japan trade optimism
As of 7:30 a.m. EDT on July 23, 2025, U.S. stock futures were up modestly:
- Dow Jones (YM=F): +0.3%
- S&P 500 (ES=F): +0.2%
- Nasdaq 100 (NQ=F): +0.1%
President Donald Trump announced the deal on Truth Social, calling it “perhaps the largest Deal ever made.” The agreement reduces proposed 25% auto tariffs on Japanese imports to 15%, easing tensions between two of the world’s largest economies. Japanese automakers rallied in response, with Toyota, Honda, and Mazda gaining over 10% in premarket trading.
Tesla, Alphabet earnings on deck
Markets are also bracing for second-quarter results from Tesla (TSLA) and Alphabet (GOOGL), both expected to report after the bell.
What to watch in Tesla’s Q2 earnings:
- Revenue is expected to fall 9% year-over-year to $22.79 billion
- Profit outlook: Adjusted EPS of $0.43
- Key focus: Robotaxi rollout and potential cheaper EV updates
- Stock performance: Down 17% year-to-date
Tensions between CEO Elon Musk and Trump over tariffs and trade policy have clouded the outlook for Tesla’s international business. Investors will be looking for clarity on margins and new product timelines.
Alphabet earnings spotlight:
- AI spending: Investors want signs that heavy AI investments are generating returns
- Legal risk: A federal judge may soon force Google to divest its Chrome browser
- Stock status: Up ~12% year-to-date on AI momentum
Meme stock frenzy returns
Retail investors are once again driving volatility, with several heavily shorted stocks posting large premarket gains:
- Krispy Kreme (DNUT): +37.7% premarket
- GoPro (GPRO): +43%
- Beyond Meat (BYND): +10.4%
- Kohl’s (KSS): Flat, after +38% Tuesday
Analysts attribute the action to coordinated buying on social platforms like Stocktwits, echoing past meme stock surges from 2021 and 2023.
“The phenomenon of meme stocks isn’t going away,” said strategist Callie Cox. “It’s become a way for a certain subset of investors to trade — and that’s completely fine.”
Trump policies weigh on clean energy
Not all stocks are benefiting from the latest policy shifts. Enphase Energy (ENPH) fell nearly 8% premarket after warning that Trump’s solar import tariffs and tax credit cuts would shrink the U.S. residential solar market by 20% in 2026.
Semiconductor sector under pressure
Chipmaker Texas Instruments (TXN) plunged 12% in early trading after weak guidance for Q3. The company cited softening demand in the automotive sector and uncertainty around tariff-driven buying patterns. Similar names like Analog Devices (ADI) and Microchip (MCHP) also moved lower.
What happens next?
With inflation, tariffs, and earnings season converging, the markets remain highly sensitive to policy shifts and tech sector performance. Today’s gains reflect optimism over trade and tempered interest rate concerns, but volatility could return quickly depending on corporate earnings and Fed commentary.