Wall Street's reliance on a small number of high market-value stocks to keep momentum going for the U.S. equities bull market will be tested in coming days as major technology and growth companies report earnings.

Northrop Grumman stock went north to the tune of 9%. Its defense compatriots RTX and Lockheed Martin LMT registered steep losses, a byproduct of weaker earnings reports.

Tesla will report its earnings after Wednesday's closing bell and option markets point to sharp moves in coming days. Calculations by MarketWatch, using FactSet data, show traders expect Tesla shares may move up or down by 6.

With Wall Street's surge to record highs, the U.S. stock market looks nearly as expensive as ever, and investors are debating whether the lofty valuations are a bearish signal or justified by the technology-heavy market's profit outlook.

Morgan Stanley expects tariff-related cost pressures to show up later this year, which could impact company margins and bump up inflation, leading to a change in rate cut expectations by the Federal Reserve.

US stock futures remained mostly flat Sunday night ahead of a busy earnings week focused on big tech companies.

(Reuters) -Wall Street futures edged lower on Tuesday as investors braced for a busy day of earnings while navigating uncertainties around U.S. trade negotiations with key partners.

Markets continued to decline for the third straight week, as investor sentiment remained cautious amid a weak start to the earnings season and persistent uncertainty over the US-India trade agreement.