As Thursday, July 31st, 2025, unfolds, the U.S. stock market is poised for a potentially positive open, largely buoyed by strong premarket trading activity in major technology companies following impressive earnings reports. Investors are closely watching futures movements and anticipating key economic data releases later today that could shape market sentiment for the remainder of the week.
Premarket Activity and Futures Movements
U.S. stock futures are pointing sharply higher this morning, signaling a robust start to trading. S&P 500 futures have climbed by 0.9%, while Nasdaq 100 futures have jumped an even more significant 1.2%. Dow Jones Industrial Average futures are also showing gains, up 0.2%. This upward momentum in futures is primarily attributed to better-than-expected earnings from tech giants, which are fueling optimism around the artificial intelligence (AI) boom. The premarket surge suggests a continuation of the tech-led rally that has characterized recent sessions.
Major Market Indexes: Current Performance and Trends
On Wednesday, July 30th, U.S. markets saw mixed performance. The S&P 500 edged down 0.1% to 6,362.90, ending a six-day streak of record-setting closes. The Dow Jones Industrial Average dropped 171.71 points, or 0.4%, to 44,461.28. In contrast, the Nasdaq Composite managed to add 31.38 points, or 0.1%, closing at 21,129.67. This mixed performance came as investors digested the Federal Reserve's decision to keep its benchmark interest rate unchanged, leading to some concerns about the timing of potential rate cuts later in the year. Rising Treasury yields also added pressure to equities as markets reassessed expectations for looser monetary policy by September.
Despite yesterday's slight pullback for the S&P 500 and Dow, both the S&P 500 and Nasdaq Composite remain near record highs, supported by strong corporate earnings and continued optimism surrounding technology stocks. Today's premarket activity indicates a renewed upward push, especially for the tech-heavy Nasdaq.
Upcoming Market Events
Today, July 31st, 2025, several important economic data announcements are on the docket that could influence market direction. Investors are particularly focused on the June Personal Consumption Expenditures (PCE) price index, which is the Federal Reserve's preferred measure of inflation. This report is expected to show that prices moved higher in June. A strong inflation print could reduce the odds of the Fed easing monetary policy in the fall. Additionally, the latest jobless claims data will be released, providing further insight into the health of the labor market.
Looking ahead to tomorrow, August 1st, the highly anticipated July nonfarm payrolls report will be released, along with the July ISM Manufacturing PMI. These employment and manufacturing data points are crucial indicators of economic strength and will be closely watched for their potential impact on future Federal Reserve policy decisions.
Major Stock News and Corporate Announcements
The most significant corporate news driving premarket sentiment today stems from blockbuster earnings reports from two tech behemoths.
Microsoft (MSFT) shares surged over 8% in premarket trading after the company reported higher-than-expected sales in its Azure cloud computing business, which surpassed $75 billion in annual revenue. Microsoft also issued a record capital spending outlook of $30 billion for the current quarter, signaling continued aggressive investment in its AI initiatives. The strong performance has put Microsoft on track to potentially reach a $4 trillion market capitalization.
Meta Platforms (META) also saw its stock soar by nearly 12% in premarket trading. The Facebook parent's second-quarter results blew past analysts' estimates, with revenue surging 22% year-over-year to $47.52 billion, and a 21% increase in ad revenue. Meta's strong third-quarter guidance, attributed to AI boosting its core advertising business, further fueled investor enthusiasm. CEO Mark Zuckerberg reiterated the company's commitment to aggressively spending to attract AI talent.
Other notable movements in premarket include:
- Amazon (AMZN) climbed 3% ahead of its earnings release after today's closing bell.
- Nvidia (NVDA) rose 2%, benefiting from the broader AI optimism.
- Apple (AAPL) ticked higher as it also prepares to report its earnings after the market closes today.
Conversely, some stocks experienced declines in premarket. Qualcomm (QCOM) fell 6% despite resilient handset performance. Anheuser-Busch InBev (BUD) dropped 10% on weak global beer sales. In other corporate news, Palo Alto Networks (PANW) fell 5% in early trading following reports of its intent to acquire cybersecurity firm CyberArk (CYBR) in a $25 billion deal. Visa (V) also saw a nearly 2% drop despite topping revenue and earnings estimates, as the company maintained its full-year guidance.
Geopolitical developments are also impacting market sentiment. U.S. President Donald Trump announced the imposition of a 25% tariff on all goods coming from India, along with an unspecified penalty for buying Russian crude oil and military equipment. This move has created trade tensions and weighed on some international markets, with Indian pharmaceutical stocks, for instance, falling 1.5%. The broader implications of these tariffs on global trade and supply chains will continue to be a focus for investors.
Today's trading session is expected to be dynamic, with strong tailwinds from tech earnings potentially offsetting concerns related to inflation data and ongoing geopolitical developments. Investors will be closely monitoring corporate announcements and economic indicators to gauge the market's direction.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.