US Open: Earnings season and strong NFP report drive Wall Street higher!

After the opening of the Wall Street session, we are seeing clear gains across major indices, with market sentiment remaining decisively positive. The S&P 500, Nasdaq, and Dow Jones continue their upward move, supported by a combination of solid macroeconomic data and an exceptionally strong earnings season.

Today’s session began following the release of US labor market data. The NFP reading came in better than expected, confirming that the US labor market remains relatively resilient despite higher interest rates and a more challenging economic environment. At the same time, this is not a report that signals overheating in the economy. Employment dynamics rather suggest a gradual cooling rather than a sharp slowdown or a renewed acceleration in inflationary pressures.

Market reaction to labor data remains however relatively muted. Investors are focusing more on the broader macro picture and, above all, on corporate earnings, which are performing exceptionally well in the current reporting season. In many cases, reported profits are exceeding analysts’ expectations, with some companies delivering record results. This strengthens the narrative of resilience among US corporations, even in an environment of elevated financing costs.

The strength of the technology sector is particularly visible, once again leading gains and supporting the Nasdaq index, which remains near all-time highs. Growth stocks and large tech companies continue to be the main driver of the entire market, attracting capital despite ongoing uncertainty around monetary policy.

In the currency market, reaction to NFP is also limited, further confirming that investors do not see today’s data as a meaningful shift in the Fed outlook. Interest rate expectations remain relatively stable, with the market still focused on upcoming inflation data and the broader economic trajectory.

As a result, Wall Street continues its upward trend, driven primarily by corporate earnings and a strong risk-on sentiment. Macro data, even when better than expected, is currently taking a back seat to the narrative of corporate strength and the ongoing resilience of the US economy.

Source: xStation5

Futures on the S&P 500 index (US500) are rising, supported both by the relatively strong NFP reading and, more importantly, by the exceptionally strong earnings season, which remains the key driver of improving sentiment in the equity market. This results in continued gains on Wall Street, where investors maintain a positive risk appetite.

Source: xStation5

Company news

CoreWeave (CRWV.US) reported Q2 results showing extreme revenue growth driven by the AI boom, but also a significant deterioration in earnings quality and rising cost pressure. The market reaction was mixed, as the scale of expansion remains impressive, but profitability continues to be under pressure.

Key figures:

• Revenue: 2.08 billion USD (+112% y/y)
• EPS: -1.4 USD vs expectations of approx. -0.9 USD
• Backlog: 99.4 billion USD (+284% y/y)
• Adjusted net income: 21 million USD (margin around 1%), down more than 76% q/q and 87% y/y
• Net loss: 589 million USD (+392% y/y)
• Q2 revenue guidance: 2.45–2.6 billion USD vs expectations around 2.7 billion USD

Overall, the report reflects a typical hyper-growth AI company profile: very strong revenue and backlog expansion, but at the same time rising losses, high infrastructure costs, and guidance below expectations. This imbalance between growth scale and profitability was the main reason behind the negative market reaction.

IREN (IREN.US) is rallying strongly after announcing a 5-year AI cloud deal with Nvidia worth approximately 34 billion USD, covering the development of large-scale data center infrastructure (around 5 GW) for AI workloads. Additionally, Nvidia (NVDA.US) received the option to invest up to 2.1 billion USD in IREN shares, which the market interprets as a strong strategic endorsement of the company’s direction.

Wendy’s (WEN.US) reported better-than-expected Q1 results, which triggered a positive market reaction and share price gains. The company demonstrated that despite a challenging US consumer environment, its results came in ahead of expectations, while also providing a relatively stable outlook, which was interpreted as an improvement in short-term sentiment.

Key figures:

• Revenue: 540.6 million USD (+3.3% y/y), beating expectations by more than 22 million USD