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.

In stocks, Nvidia more than 1% rose as investors await Alphabet GOOGL earnings at market close. Shares also rose following a Wall Street Journal report that Tesla TSLA Chief Executive Elon Musk's xAI startup is looking to raise up to $12 billion to buy Nvidia chips to train xAI's Grok chatbot.

Keurig Dr Pepper is set to release its earnings on July 24. Historically, KDP stock has exhibited negative one-day returns in the aftermath of earnings announcements.

Stock futures are higher Wednesday as investors welcome news that the U.S. reached a trade agreement with Japan and prepare for the release of quarterly results from major technology companies.

U.S. stocks are trading near record highs heading into the thick of the second-quarter earnings season, but with markets historically expensive and reliant on the performance of tech companies, some investors are starting to embrace a more cautious outlook.

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There’s a feeling of optimism in the U.S. stock market about the week ahead, with corporate earnings finally poised to hold the spotlight.

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.