US open: Stocks rebound after Fed pause, Big Tech updates

(Sharecast News) - Major indices were in the green early on Thursday as markets absorbed a fresh wave of Big Tech earnings, the Federal Reserve's decision to keep rates on hold, and renewed tensions in the Middle East.

As of 1445 BST, the Dow Jones Industrial Average was up 0.35% at 51,776.82, while the S&P 500 advanced 0.82% to 7,375.87, and the Nasdaq Composite came out of the gate 1.60% higher at 24,833.70.

The Dow opened 182.68 points higher on Thursday, reclaiming just a fraction of heavy losses recorded in the prvious session as the blue chip index delivered its worst single-day performance since April 2025.

Software giant Microsoft shares ticked higher in early trade as it posted another strong quarter and set out plans for steady capital spending through 2026. Adjusted earnings per share came in at $4.74, while revenues rose 18% yearonyear to $90.01bn, ahead of the $87.62bn expected on the Street. Net income climbed to $35.77bn, helped by a $3.2bn gain from Microsoft's Anthropic investment and lowerthananticipated costs from its voluntary retirement programme.

On the other hand, Meta slumped as investors reacted negatively to the firm's plans to ramp up spending on artificial intelligence despite a drop in quarterly profits. The Facebook and Instagram owner said revenues rose 28% yearonyear to $61bn, but quarterly profits fell 14% to $6bn. Meta also lifted its FY spending plans to $130bn to $145bn, largely directed toward AI infrastructure, up from the $125bn it outlined just three months earlier. Chief executive Mark Zuckerberg defended the investment push, saying AI development was "accelerating every part of our core business" and that Meta intends to commercialise its technology.

As to Thursday morning's earnings, Mastercard delivered a strongerthanexpected second quarter, with revenue up 14.1% year on year to $9.28bn, beating Wall Street forecasts, and nonGAAP earnings of $5.04 per share coming in 5.5% ahead of consensus. The payments group posted pretax profit of $5.49bn, a margin of 59.1%. BristolMyers Squibb also impressed, with its shares rising in early trade after the drugmaker reported Q2 EPS of $2.04, well above the $1.61 expected, and revenues of $12.97bn, up 5% excluding currency effects and comfortably ahead of the $11.71bn forecast.

Still to come, Apple and Amazon were slated to post their latest quarterly figures after the close.

Investors were also digesting the Fed's move to leave interest rates unchanged at Wednesday's meeting, a call that sent longdated Treasury yields higher, and news that US forces had completed a "heavy wave" of strikes against Iran in retaliation to Tehran's missile attacks on American forces in the region. US Central Command described the operation as a "powerful response" to attempted Iranian attacks on US forces in the region.

On the macro front, US inflation eased in June, with the Federal Reserve's preferred gauge posting its first monthly decline since 2020, reinforcing the central bank's decision to keep interest rates unchanged. The Bureau of Economic Analysis' headline personal consumption expenditures price index fell 0.1% on the month, driven largely by lower oil prices following a temporary truce between the US and Iran. The annual rate slowed to 3.7%, down from 4.1%, though was still well above the Fed's 2% target. The key core PCE measure, which strips out energy and was watched closely by policymakers, rose just 0.1% on the month, while its annual rate eased to 3.3% from 3.4%, offering a modest sign of cooling underlying pressures.

Elsewhere, Americans lined up for unemployment benefits at an accelerated pace in the week ended 25 July, according to the Labor Department, with initial claims rising by 9,000 to 197,000 from the prior week's 57-year low. Continuing claims, on the other hand, fell by 7,000 to 1.78m, below expectations of 1.8m, while the four-week moving average, which aims to strip out week-to-week volatility, dropped by 5,000 to 202,750. Also of note, the advance seasonally adjusted insured unemployment rate came to 1.2% for the week ended 18 July, unchanged from the previous week's unrevised rate.

On another note, US economic growth slowed sharply in the second quarter, with gross domestic product rising at an annualised 1.5%, according to the Bureau of Economic Analysis, below forecasts and down from 2.1% at the start of the year. The Q2 reading underscored the drag from the ongoing Iran conflict, with the BEA citing weaker government spending and softer gains in exports and business investment. A modest acceleration in consumer spending provided some offset, but overall momentum cooled noticeably as geopolitical tensions persisted.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Dow Chemical Co. (DOW) $30.45 5.55%

Salesforce.Com Inc. (CRM) $188.38 3.79%

Chevron Corp. (CVX) $191.86 2.28%

Coca-Cola Co. (KO) $89.08 0.92%

Visa Inc. (V) $368.73 0.58%

Nike Inc. (NKE) $43.22 0.39%

Dowdupont Inc. (DWDP) $0.00 0.00%

Walmart Inc. (WMT) $0.00 0.00%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Amgen Inc. (AMGN) $387.64 0.00%

Dow Jones - Fallers

Caterpillar Inc. (CAT) $782.71 -6.91%

Intel Corp. (INTC) $81.88 -5.80%

Goldman Sachs Group Inc. (GS) $980.75 -5.09%

JP Morgan Chase & Co. (JPM) $344.71 -3.53%

Boeing Co. (BA) $214.01 -3.41%

3M Co. (MMM) $177.95 -2.48%

Travelers Company Inc. (TRV) $389.01 -2.07%

Verizon Communications Inc. (VZ) $47.22 -2.01%

Unitedhealth Group Inc. (UNH) $420.57 -1.92%

Procter & Gamble Co. (PG) $146.10 -1.87%

S&P 500 - Risers

Cognizant Technology Solutions Corp. (CTSH) $55.97 13.37%

Charter Communications Inc. (CHTR) $145.20 8.82%

Expedia Group Inc. (EXPE) $304.27 8.36%

Dxc Technology Company (DXC) $11.77 8.28%

Adobe Systems Inc. (ADBE) $263.43 7.20%

Intuit Inc. (INTU) $333.13 6.79%

DENTSPLY Sirona Inc. (XRAY) $14.20 6.77%

Incyte Corp. (INCY) $127.10 6.38%

Gartner Inc. (IT) $165.65 6.29%

Booking Holdings Inc. (BKNG) $201.30 5.40%

S&P 500 - Fallers

VF Corp. (VFC) $15.08 -17.37%

KLA-Tencor Corp. (KLAC) $170.19 -12.39%

Micron Technology Inc. (MU) $739.00 -11.15%

Masco Corp. (MAS) $72.56 -11.09%

Applied Materials Inc. (AMAT) $436.45 -10.46%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

FMC Corp. (FMC) $10.01 -8.50%

Lam Research Corp. (LRCX) $252.35 -7.72%

Advanced Micro Devices Inc. (AMD) $429.56 -7.24%

Fortive Corporation (FTV) $59.54 -7.10%

Nasdaq 100 - Risers

Cognizant Technology Solutions Corp. (CTSH) $55.97 13.37%

Workday, Inc. (WDAY) $168.01 10.85%

Charter Communications Inc. (CHTR) $145.20 8.82%

Expedia Group Inc. (EXPE) $304.27 8.36%

Adobe Systems Inc. (ADBE) $263.43 7.20%

Intuit Inc. (INTU) $333.13 6.79%

DENTSPLY Sirona Inc. (XRAY) $14.20 6.77%

Incyte Corp. (INCY) $127.10 6.38%

Liberty Global plc Series A (LBTYA) $10.53 6.00%

Liberty Global plc Series C (LBTYK) $10.25 5.67%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

KLA-Tencor Corp. (KLAC) $170.19 -12.39%

Micron Technology Inc. (MU) $739.00 -11.15%

Applied Materials Inc. (AMAT) $436.45 -10.46%

Lam Research Corp. (LRCX) $252.35 -7.72%

Synopsys Inc. (SNPS) $373.69 -6.58%

Microchip Technology Inc. (MCHP) $71.37 -6.52%

QUALCOMM Inc. (QCOM) $155.68 -5.86%

Intel Corp. (INTC) $81.88 -5.80%

Cadence Design Systems Inc. (CDNS) $332.76 -5.60%