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Futures up: Dow 0.48%, S&P 500 0.37%, Nasdaq 0.16%

July 23 (Reuters) - U.S. stock index futures jumped on

Wednesday after President Donald Trump struck a trade deal with

Japan, bolstering expectations of more such agreements as the

August 1 deadline approaches.

The agreement includes lowering tariffs on Japan's auto

sector to 15% from the previous 27.5%, while duties on other

Japanese goods will also be slashed to 15% from 25%.

At 5:48 a.m. ET, S&P 500 E-minis were up 23.25

points, or 0.37%. Nasdaq 100 E-minis were up 37.25

points, or 0.16%, and Dow E-minis were up 216 points, or

0.48%.

The benchmark S&P 500 closed at a record high on

Tuesday, marking its eighth record close in nearly a month,

boosted by easing trade tensions, signs of a resilient U.S.

economy and largely upbeat second-quarter earnings.

The blue-chip Dow ended 0.4% higher and was just

1.25% shy of its all-time high. The tech-heavy Nasdaq,

however, was dragged lower by losses in Meta Platforms ( META )

and Microsoft ( MSFT ).

Investors' attention is on earnings from "Magnificent Seven"

group that have helped propel U.S. stocks to all-time highs,

with Tesla and Alphabet set to report after

the closing bell on Wednesday.

Renewed optimism about artificial intelligence, coupled with

stretched valuations, has led to elevated earnings expectations

for these stocks, leaving little room for disappointment.

Shares of Tesla and Alphabet were largely steady in

premarket trading.

Texas Instruments ( TXN ) sank 11.7% 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 4.7% and 6.3%.

Automaker General Motors ( GM ) 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%.

Other notable names reporting on Wednesday include Hasbro

, Chipotle, and Mattel ( MAT ).

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

56.1%, according to the CME FedWatch tool.