Wall Street rallies today on most recent Big Tech earnings that come as reassuring amid concerns about potential overvaluation of technological megacaps and AI overinvestment. US indices trade mostly in the green, shrugging off Fed’s moderately hawkish stance on interest rates and hotter-than-expected inflation data (Nasdaq: +1.25%, S&P 500: +0.7%, DJIA: +0.3%, Russell 2000: -0.2%).
U.S. inflation rose in June, with the PCE price index up 0.3% as tariffs began lifting goods prices. Annual inflation hit 2.6%, while core inflation remained at 2.8%. Consumer spending rose 0.3%, rebounding from May's stagnation. Despite tariff pressures, the Fed held rates steady but hinted that price effects may be prolonged.
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Create account Try a demo Download mobile app Download mobile appTech stocks are leading the market today, with Communication Services boosted by Meta’s 12% surge following strong earnings. That gain helped offset an 8% drop in Paramount Global ahead of its results. Microsoft also rallied 5% after a major earnings beat, pushing its market cap past $4 trillion. Nvidia (NVDA.US: +1.6%) and Amazon (AMZN.US: +4.3%) joined the rally, while Apple (AAPL.US) trading flat ahead of its earnings call.
Today’s performance of S&P 500 sectors. Source: Bloomberg Finance LP
US100 (H1)
Nasdaq futures corrected some of their bullish, pre-market gains, although selling pressure had been stopped at previous resistance level around 23600, broken at the publication of Meta and Microsoft’s earnings. US100 is currently trading around 30-hours exponential moving average (EMA30; light purple) and further momentum will highly depend on Apple and Amazon’s financial reports, to be released after the session.
Source: xStation5
Company news:
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Arm Holdings (ARM.US) plunges 10% after Q2 profit guidance missed expectations due to rising R&D spending tied to AI. While revenue was in line, the profit forecast lagged. CEO Haas emphasized long-term gains from AI-focused investments like the Stargate project with OpenAI. Investors remain wary amid chip-sector softness and tariff concerns.
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EBay (EBAY.US) surges 17% after Q2 results topped estimates and guidance impressed. Focus category GMV rose 10%, showing momentum in core segments. Analysts upgraded the stock, citing structural growth, resilient demand, and margin expansion. U.S. and collectibles led gains. Q3 outlook signals stability despite macro and regulatory uncertainty.
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Meta (META.US) jumped 12% as Q2 results beat expectations, with 22% revenue growth driven by strong ad pricing and usage across its Family of Apps. AI-related capex is rising, with $100B possible in 2026. Despite continued Reality Labs losses, robust margins (43%) and ad gains (+9% pricing) support aggressive AI infrastructure investment.
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Microsoft (MSFT.US) surged 5% after strong Q4 results, led by 39% Azure growth and broad strength in cloud. EPS and revenue beat estimates, easing investor concerns over capex. Analysts cheered AI momentum and enterprise adoption. Chipmakers and software peers rallied, with Copilot surpassing 100M users. Capex hit $24.2B.
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Qualcomm (QCOM.US) shares fall around 4.2% in after-hours trading following mixed Q3 results and cautious outlook. While overall revenue and EPS beat estimates, handset revenue growth lagged expectations, likely impacted by tariff-driven demand pull-forward. Automotive and IoT segments showed strong gains. Analysts remain mixed but see long-term growth potential.
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Western Digital (WDC.US) surged 6.7% after Q4 beats and bullish Q1 guidance. Strong cloud demand, tight HDD supply, and momentum in high-capacity drives lifted margins and revenue. Analysts see upside in gross margin, EPS, and share buybacks. AI and hyperscaler storage needs fuel long-term growth. Shares outperform peer Seagate.
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