Stock market today: Tech earnings rally lifts Nasdaq, S&P 500 futures
Stock futures surged early Thursday as upbeat earnings from tech giants Microsoft and Meta Platforms injected new momentum into Wall Street. The Nasdaq and S&P 500 set their sights on new record highs, while investors braced for upcoming inflation data that could shape Federal Reserve policy.
Big Tech earnings fuel early rally
Meta shares soared over 11% in premarket trading after the company beat second-quarter expectations and issued strong third-quarter guidance. Microsoft followed with an 8% gain after its Azure cloud business surpassed $75 billion in annual revenue.
- Microsoft (MSFT): +8.3% premarket, eyes $4 trillion market cap
- Meta Platforms (META): +11.6% premarket on bullish AI spending outlook
- Apple (AAPL) and Amazon (AMZN) report earnings after the close
Index futures update (7:50 AM ET)
- Nasdaq 100 (NQ=F): +1.3%
- S&P 500 (ES=F): +0.9%
- Dow Jones (YM=F): +0.3%
The gains follow a mixed session Wednesday where the Nasdaq managed a slight gain despite the Fed holding rates steady for a fifth straight meeting.
Fed policy and inflation in focus
Chair Jerome Powell reiterated on Wednesday that the Federal Reserve has “made no decisions” on a rate cut in September, dampening investor expectations. The odds of a cut next month dropped to below 40%, down from about 60% earlier in the week.
Investors are now eyeing Thursday’s release of the Fed’s preferred inflation gauge—the core Personal Consumption Expenditures (PCE) index. Economists forecast a 2.5% year-over-year increase.
“With the long summer gap between Fed meetings, the September decision will carry extra weight,” said Morgan Stanley’s Michael Gapen.
Trade optimism adds to market momentum
Beyond earnings, the market was buoyed by a wave of trade deals announced ahead of President Trump’s tariff deadline. The U.S. and South Korea agreed to eliminate duties on U.S. exports, while Seoul pledged $350 billion in U.S. investments.
Trending stocks this morning
- Carvana (CVNA): +16% premarket after beating Q2 earnings and sales
- Confluent (CFLT): +20% after strong cloud revenue growth
- CVS Health (CVS): +7% after profit beat
- eBay (EBAY): +13% on consumer demand strength
- Arm Holdings (ARM): -7% after announcing new chip plans
- Qualcomm (QCOM): -6% despite resilient handset performance
- Anheuser-Busch InBev (BUD): -10% on weak global beer sales
What happens next?
Markets await earnings from Apple and Amazon, due after the bell, as well as the latest jobless claims and June’s PCE data. A strong inflation print could reduce the odds of Fed easing this fall.
Despite recent gains, some analysts warn the market may need to pause.
“Sentiment has shifted back to a pretty bullish tenor, and I think the market needs to consolidate,” said Ross Mayfield of Baird.