"Earnings Season Impact: Stock Market Faces Test Amid China Trade Miss and Tense Middle East"

As markets shift focus to the first quarter U.S. corporate earnings season, attention is drawn to the alarming decline in China's trade and rising tension in the Middle East. U.S. banks are expected to report slightly lower quarterly profits, with technology-related companies leading S&P 500 profit growth. The Federal Reserve's policy trajectory and global central bank rate cuts are being closely monitored, while the European Central Bank's indication of a potential rate cut in June has impacted the dollar and European stocks. Additionally, Chinese trade data showed a sharp contraction in exports and imports, contributing to market uncertainty.