The U.S. stock market opened higher on Thursday, July 31st, 2025, with major indexes posting significant gains, largely propelled by a wave of robust earnings reports from the technology sector. This positive start comes as investors digest the Federal Reserve's latest interest rate decision and anticipate key inflation data.
Market Indexes Opening Performance
At the opening bell, the S&P 500 (SPX) surged, rising 1.01% to 6,427.02, while the tech-heavy Nasdaq Composite (IXIC) led the charge with a substantial 1.55% increase, reaching 21,457.48. The Dow Jones Industrial Average (DJIA) also saw a positive start, climbing 0.46% to 44,665.82. In early trading, the S&P 500 continued its ascent, up 0.7%, and the Nasdaq Composite advanced 1.3%, while the Dow Jones Industrial Average gained 82 points. This strong opening performance signals renewed investor confidence, particularly in the wake of impressive quarterly results from several Big Tech companies.
Upcoming Market Events
Investors are closely monitoring several critical events that could influence market direction in the coming days and weeks. Today, the Personal Consumption Expenditures (PCE) index for June is slated for release at 8:30 AM ET. This inflation gauge is a key metric closely watched by the Federal Reserve. Economists are forecasting a year-over-year increase of 2.5% for the PCE, up from 2.3% in May, while the "core" PCE inflation rate, which excludes volatile food and energy prices, is expected to hold steady at 2.7%.
Yesterday, the Federal Reserve opted to keep its benchmark interest rate unchanged, a widely anticipated decision. Federal Reserve Chair Jerome Powell indicated that it is still too early to consider a September rate cut, stating that the current monetary policy is not restricting the economy. This hawkish stance has led traders to price in a 62.8% chance that the Fed will maintain current rates in September.
The earnings season continues to be a major driver, with several prominent companies scheduled to report. After today's closing bell, tech giants Apple (AAPL) and Amazon (AMZN) are set to release their quarterly results, which are highly anticipated by the market. Looking ahead into August, the Q2 2025 earnings season will continue with a steady stream of reports from various companies. Notably, Worksport Ltd. (WKSP) is scheduled to announce its Q2 2025 earnings on August 13, 2025.
Geopolitical developments are also on the radar, particularly regarding trade. U.S. President Donald Trump announced a 25% tariff on all goods imported from India, effective August 1st, along with an unspecified penalty for India's purchases of Russian crude oil and military equipment. This news caused Indian equity markets to experience early declines, though they pared some losses by the close. Conversely, a new trade deal was announced with South Korea, reducing import tariffs to 15% from a previously threatened 25%.
Major Stock News
Today's market narrative is dominated by the impressive performance of several major public companies, particularly in the technology sector, driven by strong earnings and the ongoing enthusiasm surrounding artificial intelligence (AI).
Meta Platforms (META) was a standout performer, soaring 12.3% in premarket trading and surging 12% in early trading. This significant jump followed the social media giant's forecast for third-quarter revenue well above estimates, largely attributed to AI advancements boosting its core advertising business. Meta's second-quarter earnings per share of $7.14 on revenue that climbed 22% year-over-year to $47.52 billion comfortably surpassed analyst expectations.
Microsoft (MSFT) also experienced a substantial rally, surging 8.8% in premarket trading and jumping 6% in early trading. The software behemoth issued a record capital spending outlook of $30 billion for the current quarter and reported higher-than-expected sales in its Azure cloud computing business, further highlighting the impact of AI investments. Microsoft is now on track to achieve a $4 trillion market capitalization for the first time.
Other tech heavyweights also saw positive movement. Amazon (AMZN) climbed 3.4% in premarket and 3% in early trading as investors eagerly await its earnings report later today. Nvidia (NVDA), a key player in the AI hardware space, rose 1.9% in premarket and 2% in early trading. Apple (AAPL) also saw a slight uptick in premarket ahead of its own earnings release this evening.
Beyond the tech giants, other companies made significant news. Applied Digital (APLD) soared an impressive 24.1% after the data center operator exceeded quarterly revenue estimates, driven by strong AI-related demand for its cloud infrastructure. In other post-earnings movements, telecommunications and entertainment conglomerate Comcast (CMCSA) rose 5%, online marketplace eBay (EBAY) surged 13%, and online used car seller Carvana (CVNA) climbed 17%. Conversely, chip designers Arm Holdings (ARM) and Qualcomm (QCOM) saw declines of 5% and 7% respectively after their earnings reports, while brewer Anheuser-Busch InBev (BUD) tumbled 11%. Meanwhile, Alphabet (GOOGL) and Tesla (TSLA) were trading slightly lower this morning.
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.