The U.S. stock market experienced a notable uplift in afternoon trading on Thursday, July 31, 2025, largely driven by robust earnings reports from major technology companies, even as investors digested a hawkish stance from the Federal Reserve. The S&P 500 (SPX) and the tech-heavy Nasdaq Composite (IXIC) were both trading higher, while the Dow Jones Industrial Average (DJI) saw a slight dip. This positive momentum puts the major indexes on track for their third consecutive month of gains in July, fueled by optimism surrounding strong corporate earnings and the continued resilience of the economy.
Market Indexes and Performance
As of afternoon trading, the S&P 500 (SPX) was up 0.2%, hovering just above the record high it set on Monday. The Nasdaq Composite (IXIC) showed stronger performance, gaining 0.5% and also on track for a new record. In contrast, the Dow Jones Industrial Average (DJI) slipped 0.2%, trading below its earlier session highs. The technology sector was the primary driver of the broader market's gains, propelled by advancements in artificial intelligence. Both the S&P 500 and Nasdaq have achieved a series of record highs this month, with the Dow approximately 1% away from reaching its first new high since December.
Major Stock News and Sector Performance
The afternoon's market activity was significantly influenced by better-than-expected quarterly results from tech giants. Microsoft (MSFT) shares soared 4% following its fiscal fourth-quarter earnings report, which surpassed analyst expectations due to strong growth in its Intelligent Cloud segment. Microsoft's impressive performance has put it on pace to potentially join Nvidia (NVDA) as only the second company ever to achieve a $4 trillion market capitalization. Similarly, Meta Platforms (META), the parent company of Facebook and Instagram, surged 12% after its sales and profit targets crushed Wall Street's estimates, largely attributed to its continued investments in artificial intelligence. Meta's stock has now gained 33% since the start of the year, making it the biggest gainer among the "Magnificent 7" stocks in 2025.
Other prominent tech companies also saw movement. Amazon (AMZN) climbed 2% ahead of its earnings release, scheduled after the closing bell today. Apple (AAPL) was little changed as it too prepared to report its earnings tonight. Among other mega-cap tech stocks, Broadcom (AVGO) and Tesla (TSLA) each dropped about 3%, while Alphabet (GOOGL) declined 2%, and Nvidia (NVDA) ticked lower.
Beyond the tech sector, earnings remained a key focus. Telecommunications and entertainment giant Comcast (CMCSA) saw gains. CVS Health (CVS) rose 1.6% after exceeding Wall Street's expectations for its second quarter and raising its full-year forecast. Carvana (CVNA) shares skyrocketed to an all-time high after the used car retailer surpassed earnings and revenue expectations, driven by a significant increase in vehicle sales.
In terms of sector performance, the technology sector led the charge, doing the "heavy lifting" for the broader market. Consumer discretionary shares also had a strong day, as did financial stocks. Conversely, mining, gold, and energy stocks experienced declines.
Upcoming Market Events
Investors are closely monitoring several upcoming market events that could influence market sentiment. The Federal Reserve's decision yesterday to leave its benchmark interest rate unchanged at 4.25%-4.5% was a significant event. Fed Chair Jerome Powell's hawkish stance, emphasizing the need for more data on the impact of tariffs on inflation before adjusting rates, dampened market hopes for a rate cut in the coming months. This stance put pressure on stocks yesterday afternoon, and traders now see a reduced chance of a rate cut at the Fed's next meeting in September.
Looking ahead to August, key economic data announcements are anticipated. The July nonfarm payrolls report is expected on Friday, August 1st, along with the July unemployment rate and average hourly earnings. The July ISM manufacturing index is also due. Investors will also be watching for President Trump's August 1st deadline for trade deals to avoid high tariffs, which has been a source of uncertainty. The Commerce Department's report on the personal consumption expenditures (PCE) index for June showed prices rose 2.6% compared to a year ago, slightly higher than economists expected and an increase from May's 2.4%. This is the Federal Reserve's preferred measure for inflation.
Further into August, the FOMC minutes from the July 29-30 meeting are scheduled for release around August 20th, providing more insight into the Fed's deliberations. Other economic indicators throughout August include various manufacturing and services PMI readings, consumer sentiment data, and updates on GDP. The ongoing earnings season will also continue to unfold, with many more companies set to report their quarterly results in the coming weeks.
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.