US stocks drift in early trading as CEOs cite uncertainty

US stocks are drifting in mixed trading as stronger-than-expected profits keep piling higher for companies, while CEOs also say they’re unsure how long that can last because of uncertainty around President Donald Trump’s trade war. The S&P 500 was 0.3% lower early Tuesday. The Dow Jones Industrial Average was up 48 points, and the Nasdaq composite was down 0.4%. UPS said it wouldn’t update its forecasts because of “macro-economic uncertainty.” Investors fear Trump’s tariffs could cause a recession by sending prices higher, but the erratic way they’re being rolled out is also causing confusion among businesses and households.

World shares were mostly higher on Tuesday after US stocks drifted to a mixed, quiet close at the start of a busy week of corporate earnings and economic data.

Germany’s DAX gained 0.7% to 22,421.79, while the CAC 40 was nearly unchanged at 7,571.68. Britain’s FTSE 100 also was holding steady at 8,416.80.

The futures for the S&P 500 and the Dow Jones Industrial Average were up 0.3%.

In Asian trading, Tokyo’s markets were closed for a holiday.

Hong Kong’s Hang Seng picked up 0.2% to 22,008.11, while the Shanghai Composite index edged 0.1% lower, to 3,286.55.

In South Korea, the Kospi jumped 0.7% to 2,565.42. Australia’s S&P/ASX 200 rose 0.9%, to 8,070.60.

Taiwan’s Taiex gained 1%, while the Sensex in India gained 0.3%.

Markets have gotten a respite from the sharp swings that had rocked them as hopes rose and fell that President Donald Trump may back down on his trade war.

The Wall Street Journal reported Monday that Trump was preparing, following widespread speculation over the issue, to adjust his 25% tariffs on imports of autos and auto parts.

The Trump administration appears to have made little headway in finding a way forward with Beijing, with both sides insisting the other needs to make the first move. Treasury Secretary Scott Bessent, speaking on CNBC, said he believed China wants a “de-escalation” in the trade war.

“I do have an escalation letter in my back pocket, and we’re very anxious not to have to use it.” “Maybe they’ll call me one day,” Bessent told Fox news in a separate interview.

Trump has ordered increases in tariffs on Chinese exports that combined add up to 145%. China has struck back with import duties on US goods of up to 125%, though it has exempted some items.

Many investors believe Trump’s tariffs could cause a recession if left unaltered.

On Monday, the S&P 500 inched up by 0.1%, extending its winning streak to a fifth day. The Dow Jones Industrial Average added 0.3%, and the Nasdaq composite slipped 0.1%.

Mixed trading for some influential tech stocks ahead of their earnings reports this week pulled the S&P 500 back and forth between modest gains and losses for much of Monday.

Amazon fell 0.7%, Microsoft dipped 0.2%, Meta Platforms added 0.4% and Apple rose 0.4%.

Outside of Big Tech, executives from Caterpillar, Exxon Mobil and McDonald’s may also offer clues this week about how they’re seeing economic conditions play out. Several companies across industries have already slashed their estimates for upcoming profit or pulled their forecasts entirely because of uncertainty about what will happen with Trump’s tariffs.

A fear is that Trump’s on-again-off-again tariffs may be pushing households and businesses to alter their spending and freeze plans for long-term investment because of how quickly conditions can change, seemingly by the hour.

So far, economic reports seem to show the US economy is still growing, though at a weaker pace. On Wednesday, economists expect a report to say US economic growth slowed to a 0.8% annual rate in the first three months of this year, down from a 2.4% pace at the end of last year.

Most reports so far have focused on data from before Trump’s “Liberation Day” on April 2, when he announced tariffs that could affect imports from countries worldwide.

The most jarring economic data recently have come from surveys showing US consumers are getting much more pessimistic about the economy’s future because of tariffs. The Conference Board’s latest reading on consumer confidence is due on Tuesday.

On Friday, a report on the US jobs market which will show how many workers employers hired during all of April.

In other dealings early Tuesday, benchmark US crude oil lost 73 cents to $61.32 per barrel. Brent crude gave up 76 cents to $64.03 per barrel.

The US dollar bought 142.53 Japanese yen, up from 142.02 yen. The euro slipped to $1.1388 from $1.1422.