4:20pm: Amazon, Apple due
US stocks staged a strong comeback on Thursday, shaking off the previous session's sharp selloff after investors looked past the Federal Reserve's decision to keep interest rates unchanged.
The Nasdaq led the rally, surging 2.8% to 25,122 as technology stocks powered higher. The S&P 500 climbed 1.7% to 7,438, while the Dow Jones Industrial Average added 614 points, or 1.2%, to close at 52,208.
Technology was the standout sector, with Microsoft helping drive the rebound after recording the largest single-day increase in market value ever, lifting sentiment across the broader market. The recovery came just a day after stocks tumbled on the Fed's hawkish stance, suggesting investors were once again focusing on strong corporate earnings and AI-driven growth.
Despite the impressive gains in the major indexes, the rally was narrower than the headline numbers suggested. Market breadth remained weak, with more individual stocks declining than advancing, highlighting that much of the buying was concentrated in a handful of large-cap technology names.
Investors now turn their attention to another busy stretch of earnings after the closing bell, with results due from Apple, Amazon, Rivian, Coinbase, Strategy and Reddit.
3:45pm: Proactive news headlines
- Ocean Power Technologies Inc (NYSE-A:OPTT) delivered a WAM-V unmanned surface vehicle to Stevens Institute of Technology, supporting marine research initiatives while expanding the company’s presence in the academic market.
- M2i Global Inc (OTC:MTWO) entered a non-binding strategic collaboration with Evrensel Impact Group to explore and evaluate potential critical minerals opportunities across Africa by combining regional networks with M2i’s minerals strategy.
- Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) delayed the release of its 2026 mineral resource estimate for the Nisk polymetallic project in Quebec until the end of August due to scheduling delays at its consulting engineering firm.
- 374Water Inc (NASDAQ:SCWO, FRA:8LL) highlighted the importance of advanced wastewater treatment technologies as US officials investigate a major foodborne illness outbreak and assess ways to strengthen public health protections.
- Purepoint Uranium Group Inc (TSX-V:PTU, OTCQX:PTUUF, FRA:P5X0) reported a strong radioactive intercept from its 2026 summer drilling program at the Dorado project, with the latest hole at the Nova Discovery returning broad zones of elevated radioactivity.
- Phunware Inc (NASDAQ:PHUN, FRA:2RJA) appointed Nick Farrell as senior vice president of sales and added two advisors as the mobile enterprise technology company expands momentum following its showcase at HITEC North America 2026.
- 1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) said drilling results from its True North Gold Project in Manitoba confirmed high-grade gold mineralization extending across a 720-metre strike length and to depths of nearly 975 metres.
- Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF, FRA:Z620) will rebrand as Dune Oil Corp as the company shifts its focus toward oil exploration and development, with shares set to trade under the new ticker “DUNE” on the Canadian Securities Exchange.
2:50pm: Market movers
- Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) shares dropped after the company missed earnings expectations and issued softer-than-expected guidance, raising investor concerns that its heavy artificial intelligence spending has yet to deliver meaningful returns.
- Microsoft Corp (NASDAQ:MSFT) shares surged after the technology giant reported strong quarterly results, driven by accelerating Azure cloud growth and a sharp increase in Copilot adoption.
- Stellantis NV (NYSE:STLA, EPA:STLA) reported second-quarter revenue growth and improved operating performance, but its profit missed analyst expectations, weighing on the automaker's results.
- Crocs, Inc. (NASDAQ:CROX) shares fell after the footwear maker issued weaker-than-expected third-quarter guidance, with tariff pressures and ongoing weakness at its HEYDUDE brand overshadowing better-than-expected second-quarter earnings and revenue.
- Carvana Co. (NYSE:CVNA) shares declined despite posting record second-quarter profit and earnings, as investors focused on a weaker-than-expected full-year outlook.
- Chipotle Mexican Grill Inc (NYSE:CMG) shares jumped after the restaurant chain beat second-quarter earnings and revenue estimates and raised confidence with a positive full-year outlook.
- Robinhood Markets Inc (NASDAQ:HOOD) reported record second-quarter revenue and stronger-than-expected earnings, but its shares slipped as investors reacted to lower cryptocurrency revenue and the impact of a one-time accounting benefit.
- Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) shares edged lower after the chipmaker narrowly missed quarterly earnings expectations and issued a weaker-than-expected profit forecast for the current quarter.
- Arm Holdings PLC (NASDAQ:ARM) shares rose after the chip designer beat first-quarter revenue and earnings estimates and issued stronger-than-expected guidance for the second quarter.
- Ocean Power Technologies Inc (NYSE-A:OPTT) delivered a WAM-V unmanned surface vehicle to Stevens Institute of Technology, expanding its presence in the academic marine research market.
- Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) delayed the release of its 2026 mineral resource estimate for the Nisk project until the end of August due to scheduling constraints at the consulting engineering firm preparing the report.
- 374Water Inc (NASDAQ:SCWO, FRA:8LL) said the investigation into a major US foodborne illness outbreak highlights the need for advanced wastewater treatment technologies to help protect public health and reduce the spread of contaminants.
2:20pm: Amazon to report
Amazon.com Inc (NASDAQ:AMZN) (Amazon.com Inc (NASDAQ:AMZN)) reports second-quarter earnings tonight, and Bank of America is raising the bar ahead of the print, arguing AWS is accelerating faster than the Street expects.
BofA now projects second-quarter revenue of $198.8 billion and operating profit of $24.1 billion, both above consensus of $196.8 billion and $23.6 billion.
The upside case centers on AWS: the bank raised its growth estimate to 33% year over year, up from 31%, a 5-point acceleration from the first quarter.
The driver is surging demand from AI model providers, with Anthropic-related revenue and OpenAI models on Bedrock cited as key contributors.
AWS margins should expand year over year to 34% on strong capacity utilization and pricing, though they'll contract sequentially as stock-based compensation rises.
1:45pm: A look at Apple
Apple Inc (NASDAQ:AAPL, XETRA:APC) (Apple Inc (NASDAQ:AAPL, XETRA:APC), Apple Inc (NASDAQ:AAPL, XETRA:APC)) is expected to beat consensus estimates for its fiscal third quarter, according to Bank of America, even as the bank takes a more conservative view of iPhone seasonality tied to a staggered launch schedule.
BofA said investor focus will center on component cost inflation, the durability of gross margins, and the transition following the end of Tim Cook's tenure as CEO.
The bank forecasts fiscal third-quarter revenue of $109 billion and earnings per share of $1.89, above Street estimates of $108 billion and $1.87, implying revenue growth of 16% year over year, compared with Apple's guidance range of 14% to 17%.
BofA said iPhone build plans, including for Pro models, remain robust. However, the analysts have factored in a more conservative outlook given the staggered rollout this cycle: Pro, Pro Max and a foldable model launching in September, with the base model and Air arriving in March.
1:00pm: A tale of two earnings
Microsoft Corp (NASDAQ:MSFT) (Microsoft Corp (NASDAQ:MSFT)) shares surged almost 17% on Thursday morning, putting the stock on track for its best single-day performance in nearly 18 years.
Investors and analysts alike cheered earnings showed accelerating Azure growth and a sharp inflection in Copilot adoption.
Management guided to Azure growth of about 45% for the first quarter of fiscal 2027, well above the Street's roughly 41% estimate.
Kathleen Brooks, research director at XTB, said Microsoft's results were "more warmly received" than other big tech reports this season, pointing to a $3.2 billion return on its Anthropic investment and lower-than-expected early retirement programme costs that helped preserve profitability.
And then there's Meta. Its shares fell as much as 10% on Thursday after the company's third-quarter results left investors unconvinced that its massive artificial intelligence spending is translating into tangible returns.
Total costs rose 55% year-over-year to $42.03 billion, with more than $1 billion of that tied to severance pay following a round of layoffs.
On the earnings call, Meta CEO Mark Zuckerberg declined to offer specific capex guidance for 2027, saying infrastructure planning "remains highly dynamic."
"We're gearing our current infrastructure plans toward maximizing capacity in 2026 and 2027, while giving us the flexibility to continue growing in 2028 and beyond," he said.
Reality Labs, the division behind Meta's virtual reality headsets and wearable AI devices, reported a $4.6 billion loss on sales of $431 million for the quarter.
12:05pm: Semiconductors storm back
Semiconductors are staging a comeback on Thursday, pushing the Nasdaq higher for the first time this week.
“The buyers have come storming back in today, buoyed by the signs of Microsoft actually making money off its huge capex, and given some additional impetus by the GDP figures that give the Fed chairman a boost in his quest to avoid raising rates," said Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
"Microsoft is racing away in its best day since the financial crisis, while Sandisk shares are on fire after the drubbing suffered earlier in the week. Big rallies are a feature of pullbacks, since hope springs eternal – investors just have to hope tonight’s results provide a further excuse to jump back in.”
11:00am: Economy slowing
This morning's weaker-than-expected GDP data could raise concerns that the economy is slowing more quickly than anticipated, says Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.
Still, Zaccarelli noted that the lower PCE readings "should give the Fed some more room to be patient and not raise interest rates prematurely."
"As we head into the fall, within a mid-term election year, there is typically volatility and so we would be cautious for the next couple of months, given the headwinds of supply disruptions, slowing economic growth and election uncertainties," he noted.
10am: Microsoft and Apple drive rebound for Nasdaq
All three major Wall Street indexes have opened higher, with the Nasdaq jumping 2.3% and S&P 500 gaining 1.2%.
The Dow has climbed 316 points, or 0.6%.
Microsoft surged 15.3% after its earnings beat, while Apple gained 10.5% as technology stocks led the rebound.
Chipmakers also rallied strongly, with Lam Research up 18.3%, SanDisk 16.5% and ARM Holdings 10.4%.
The Dow lagged as 23 of its 30 constituents fell, led by declines for Salesforce, down 5.4%, with Nike and Johnson & Johnson (NYSE:JNJ) dropping over 3%.
9.10am: GDP growth and PCE inflation soften
US inflation softened last month, on the PCE measure, with core PCE prices up 0.1% month-on-month in June, compared to 0.3% in May.
The core PCE deflator increased at a 3.4% annualised rate in Q2, marginally above the consensus forecast of 3.3%.
US Q2 GDP rose 1.5%, down from 2.1% in the first quarter and much slower than the 2.0% expected.
Real consumption jumped 3.2%, also above the consensus of 2.3%.
Barclays economist Pooja Sriram says PCE price inflation "decelerated as widely expected".
"At the headline level, energy prices led the bulk of the drag, as we had forecast."
All of the deceleration in core PCE prices came from core services, where weakness was relatively broad-based, with categories such as accommodation, recreation and non-profits serving households posting outright deflation, whereas the trajectory of price increases slowed for most of the other categories, the most notable one being financial services.
"AI-related inflation came back into view in June," Sriram says, "albeit at about half its pace in the first few months of the year."
Inflation "has a memory problem", the economist adds, with the computer software and accessories category rebounding. "We expect a similar trend in the coming months."
On GDP, Oliver Allen at Pantheon says "big drags from net trade and inventories obscure solid growth in private demand in Q2, but we doubt this strength will be sustained".
"Consumption rose by 3.2%, with more than half of that increase due to a jump in spending on goods, probably driven by the huge round of income tax refunds in spring."
8am: Nasdaq set to rebound 1.3% after Microsoft boost
Wall Street is set to open higher on Thursday as strong Microsoft results helped technology stocks recover from their sharp post-Federal Reserve sell-off.
Dow Jones futures were up 225 points, or 0.4%, while S&P 500 futures pointed to a 0.6% gain and the Nasdaq was called 1.3% higher.
The previous session saw the Dow lose 1,153 points or 2.2% to close at 51,594, while the S&P dropped 1.5% to 7,316 and the Nasdaq fell 1.7% to 24,443.
The Fed held rates steady, although three officials voted for an increase. Chair Kevin Warsh offered little guidance about future decisions, prompting investors to reduce risk.
Longer-term Treasury yields continued to climb, with the 10-year yield near 4.69% and the 30-year above 5.2%.
"The selloff wasn't really about the hold," said market analyst Kenny Polcari at Slatestone Wealth, but reflected frustration that investors received "no roadmap" for future policy.
However, following earnings after the closing bell, Microsoft surged almost 9% in pre-market trading after quarterly revenue and earnings beat forecasts. Azure growth accelerated to 43%, while capital expenditure of $41 billion was lower than expected.
Meta moved in the opposite direction, falling more than 7% after hours. Revenue rose 28%, but free cash flow slumped as spending on artificial intelligence infrastructure increased.
Microsoft had provided evidence that its AI investments were producing stronger growth and profits, Polcari said, while Meta was "still asking investors to believe the payoff is coming".
Among others reporting overnight, Qualcomm lost 5.7% after its earnings, while Starbucks was percolating 6.1% higher in pre-market trading.
Attention now turns to second-quarter gross domestic product and the PCE inflation report, followed by earnings from Apple and Amazon after the closing bell.