*

Futures up: Dow 0.45%, S&P 500 0.37%, Nasdaq 0.15%

*

Tariffs on Japanese autos cut to 15% from 27.5%

*

AT&T ( T ) beats quarterly profit estimates; shares slip

*

Texas Instruments ( TXN ) slumps as tariff uncertainty hits demand

(Updates with analyst comment, prices)

By Nikhil Sharma and Pranav Kashyap

July 23 (Reuters) -

U.S. stock index futures rose on Wednesday after President

Donald Trump clinched a trade deal with Japan, fueling hopes for

a wave of new agreements ahead of the fast-approaching August 1

deadline.

The pact will slash tariffs on Japanese autos from 27.5% to

15%, with duties on other goods dropping from 25% to 15%.

At 7:03 a.m. ET, S&P 500 E-minis were up 23.5

points, or 0.37%, Nasdaq 100 E-minis were up 34.5

points, or 0.15%, and Dow E-minis were up 202 points, or

0.45%.

Futures tracking the domestically focused Russell 2000

small-cap index rose 1%.

Trump said that EU representatives are

headed to the negotiating table

on Wednesday, igniting hopes for a breakthrough deal with

Europe. While the EU

emphasized

its commitment to a negotiated solution, it is also

preparing countermeasures in case of a deadlock.

"Diminishing trade policy uncertainty is supporting risk

assets. Nevertheless, several countries (notably the EU) face

steeper tariff rates starting August 1 and higher levies pose a

downside risk to U.S. growth and upside risk to inflation,"

Elias Haddad, senior markets strategist at Brown Brothers

Harriman.

Meanwhile, the S&P 500 notched its eighth record close

in a month on Tuesday, buoyed by easing trade tensions, a

resilient U.S. economy, and upbeat second-quarter earnings.

The Dow climbed 0.4%, now within striking distance of its

all-time high, while the Nasdaq slipped as declines in Meta and

Microsoft weighed on the tech-heavy index.

Investors are now laser-focused on earnings from the

"Magnificent Seven" - the market's star performers who have

powered stocks to record highs.

Tesla and Alphabet are set to report

after the bell on Wednesday. With AI optimism running high and

valuations stretched, expectations for these tech giants are

sky-high, leaving little margin for disappointment. In premarket

trading, both the stocks held steady.

In earnings-focused moves, Texas Instruments ( TXN )

tumbled 11% after its quarterly profit forecast failed to

impress investors, as it pointed to weaker-than-expected demand

for its analog chips from some customers and underscored

tariff-related uncertainty.

The earnings also weighed on its peer analog chipmakers,

with Analog Devices ( ADI ), NXP Semiconductors ( NXPI ) and ON

Semiconductor falling between 4 and 7%.

Automaker General Motors ( GM ) also became a casualty of

the trade war on Tuesday when it said Trump's tariffs took a

$1.1 billion hit on its quarterly earnings, sending its shares

down more than 8%.

Toymaker Hasbro rose 3.2% after

raising

its annual revenue forecast, while AT&T ( T ) slipped 1.6%

despite

beating

quarterly profit estimates.

In economic data, existing home sales numbers for June is

due on the day. Thursday's weekly jobless claims numbers and S&P

Global's flash PMI data will be closely assessed to gauge

economic health in the wake of tariff uncertainties.

Following a mixed set of economic data last week,

traders have ruled out an interest rate cut by the Federal

Reserve next week. Odds for a September reduction stand at 56%,

according to the CME FedWatch tool.