U.S. stock markets are showing strong upward momentum in midday trading on Thursday, July 31, 2025, largely driven by better-than-expected earnings reports from major technology companies. The S&P 500 (SPX) and the tech-heavy Nasdaq Composite (IXIC) are leading the gains, both hitting new record intraday highs, while the Dow Jones Industrial Average (DJI) is also posting a modest advance. This positive sentiment follows two consecutive sessions of modest declines for the S&P 500 and comes despite lingering concerns about the Federal Reserve's stance on interest rates.
Market Indexes and Midday Performance
As of midday, the S&P 500 (SPX) is up approximately 0.5% to 0.8%, having reached a new record intraday high. The Nasdaq Composite (IXIC) is experiencing even more significant gains, surging around 0.9% to 1.2% and also achieving a new record intraday high. The Dow Jones Industrial Average (DJI) is showing a more modest increase, trading relatively flat to up about 0.2% to 0.3%. All three major indexes are on track to post gains for July, marking the third consecutive month of advances. This sustained optimism is fueled by generally strong corporate earnings and evidence of continued economic resilience.
The S&P 500 (SPX) and Nasdaq (IXIC) have been setting a series of record highs this month, while the Dow (DJI) is nearing its first new high since December. The market's upward trajectory today is a stark contrast to yesterday's mixed close, where the Dow (DJI) and S&P 500 (SPX) ended lower, influenced by Federal Reserve Chair Jerome Powell's cautious remarks on interest rate cuts.
Upcoming Market Events
Investors are closely monitoring several key upcoming market events that could influence future trading patterns. A significant focus remains on inflation data, particularly today's release of the Fed's preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index. Economists are forecasting a 2.5% year-over-year increase for the headline PCE and a 0.29% rise month-over-month for the core measure. This data will be crucial in shaping expectations for the Federal Reserve's monetary policy decisions in the coming months.
Looking ahead to August, several economic data announcements are scheduled. These include the Jackson Hole Symposium, Flash Manufacturing PMI & Flash Services PMI for various regions (including USD), Unemployment Claims (USD), and the Philly Fed Manufacturing Index & Existing Home Sales (USD). These releases could provide further insights into the health of the economy and potentially impact market sentiment.
Major Stock News and Company Developments
Today's market strength is largely attributed to robust earnings reports from several technology giants. Microsoft (MSFT) shares have soared, up approximately 4.4% to 9% in midday trading, after the company reported fiscal fourth-quarter earnings that surpassed analysts' expectations. This strong performance was primarily driven by significant growth in its Intelligent Cloud segment, with Azure revenue surpassing $75 billion annually. Microsoft is now on pace to potentially join Nvidia (NVDA) as the only companies ever to achieve a $4 trillion market capitalization.
Meta Platforms (META), the parent company of Facebook and Instagram, also saw its stock surge, gaining between 11.5% and 12.3% after reporting better-than-expected second-quarter results and providing optimistic third-quarter revenue guidance. The company attributed its strong advertising revenue growth to advancements in AI. Meta is currently the biggest gainer among the "Magnificent Seven" stocks so far in 2025.
Investors are also keenly awaiting earnings reports from other major tech companies, including Apple (AAPL) and Amazon (AMZN), which are scheduled to release their results after the market closes today. Their performance will likely set the tone for the broader market in the coming days.
In other notable stock news:
- Applied Digital (APLD) saw its stock jump 24.1% after the data center operator exceeded quarterly revenue estimates, also benefiting from AI-driven demand for its cloud infrastructure.
- Qualcomm (QCOM) shares were down approximately 6% despite resilient handset performance.
- Anheuser-Busch InBev (BUD) declined around 10% due to weak global beer sales.
- Trane Technologies (TT) tumbled 7% despite reporting a stronger-than-expected profit, as its revenue and current-quarter profit forecast fell short of analyst estimates.
- Starbucks (SBUX) was down 0.7% after reporting a weaker profit than anticipated.
- Palo Alto Networks (PANW) fell 5.6% following its announcement to acquire identity-security company CyberArk (CYBR) for $25 billion in cash and stock. CyberArk shares, however, saw a modest gain of 0.2%.
Overall, the midday trading session on July 31, 2025, is characterized by a strong bullish momentum, particularly within the technology sector, as investors react positively to robust corporate earnings and the ongoing impact of AI advancements.
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.