Nasdaq Futures Rally on Upbeat Amazon Earnings and Chip Stock Strength

September Nasdaq 100 E-Mini futures (NQU26) are up +1.12% this morning as investors continued to pile back into AI-related stocks following upbeat earnings from tech giant Amazon.

Amazon.com (AMZN) jumped over +12% in pre-market trading after the company’s cloud-computing unit, Amazon Web Services, recorded the fastest quarterly revenue growth since 2021 in Q2.

Nasdaq 100 futures got a further boost from gains in chip and AI infrastructure stocks in pre-market trading after earnings from U.S. tech giants provided evidence that demand for components powering AI remains robust.

On the negative side, Apple (AAPL) slumped over -7% in pre-market trading after the iPhone maker provided FQ4 revenue growth guidance that fell short of analysts’ expectations.

Meanwhile, the price of WTI crude edged higher on Friday as investors assessed the latest developments in the Middle East conflict. State-run IRIB News reported that six tankers were blocked in the Strait of Hormuz, citing a statement from the Islamic Revolutionary Guard Corps.

In yesterday’s trading session, Wall Street’s major indices ended in the green. Microsoft (MSFT) jumped over +15% and was the top percentage gainer on the Dow after the technology giant reported that revenue in its cloud-computing unit grew at the fastest pace in four years in FQ4, and Chief Financial Officer Amy Hood said she expected growth to accelerate further in the current quarter. Also, chip and AI infrastructure stocks rallied, with Sandisk (SNDK) soaring about +26% to lead gainers in the S&P 500 and Micron Technology (MU) surging more than +18%. In addition, Lam Research (LRCX) popped nearly +18% after the chip equipment maker posted upbeat FQ4 results and issued FQ1 guidance that smashed Wall Street’s estimates. On the bearish side, Meta Platforms (META) slumped more than -7% after the social media giant gave a disappointing Q3 revenue forecast.

Economic data released on Thursday were mixed. The U.S. Bureau of Economic Analysis, in its initial estimate of Q2 GDP growth, said the economy expanded at a +1.5% annualized rate, weaker than expectations of +2.1%. Also, U.S. June personal spending rose +0.3% m/m, weaker than expectations of +0.4% m/m, and personal income grew +0.2% m/m, weaker than expectations of +0.3% m/m. At the same time, the U.S. core PCE price index, a key inflation gauge monitored by the Fed, rose +0.1% m/m and +3.3% y/y in June, compared to expectations of +0.2% m/m and +3.3% y/y. In addition, the number of Americans filing for initial jobless claims in the past week rose by +9K to 197K, compared with the 201K expected.

“Despite near-term volatility, the outlook for U.S. equities remains constructive, supported by strong corporate earnings, ongoing AI adoption, a resilient economy, and favorable financial conditions,” said Sameer Samana at Wells Fargo Investment Institute.

Today, investors will focus on the University of Michigan’s U.S. Consumer Sentiment Index, which is set to be released in a couple of hours. Economists project that the final July figure will be revised lower to 53.9 from the preliminary reading of 54.4.

The U.S. Employment Cost Index will also be released today. Economists expect the ECI to rise +0.8% q/q in the second quarter, compared to +0.9% q/q in the first quarter.

The U.S. Chicago PMI will be released today as well. Economists forecast the July figure at 56.0, compared to the previous month’s value of 56.7.

On the earnings front, notable companies such as ExxonMobil (XOM), AbbVie (ABBV), Chevron (CVX), and Colgate-Palmolive Company (CL) are slated to release their quarterly results today. According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +26% jump in quarterly earnings for Q2 compared to the previous year.

U.S. rate futures have priced in a 65.2% probability of a 25 basis point rate hike and a 34.8% chance of no rate change at the conclusion of the Fed’s September meeting.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.67%, down -0.06%.

The Euro Stoxx 50 Index is up +1.04% this morning, buoyed by renewed optimism surrounding the AI trade. Technology stocks were among the biggest gainers on Friday as investors rotated back into AI-related names. Industrial stocks also climbed, led by a more than +10% gain in Teleperformance (TEP.FP) after the company reaffirmed its 2026 targets. In addition, mining stocks jumped. Preliminary data from Eurostat released on Friday showed that the Eurozone’s annual inflation rate moved further above the European Central Bank’s target in July, as energy costs picked up again and services prices strengthened, with the future trajectory of price growth largely dependent on developments in the Middle East. Separate data showed that the number of unemployed people in Germany increased slightly more than expected in July, approaching the politically significant 3 million mark on a seasonally adjusted basis. Meanwhile, European Central Bank Governing Council member Martin Kocher said on Friday that the central bank will base its autumn policy decisions on incoming data to bring inflation back to its 2% target. “The past few weeks in particular have shown just how quickly geopolitical developments can affect energy prices and, consequently, the inflation outlook,” Kocher said. In other corporate news, Universal Music Group (UMG.NA) cratered over -23% as the music company’s Q2 subscriptions and streaming revenue growth disappointed investors.

Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), Germany’s Unemployment Change, and Germany’s Unemployment Rate were released today.

Eurozone’s July CPI rose +2.9% y/y, in line with expectations.

Eurozone’s July Core CPI rose +2.5% y/y, stronger than expectations of +2.4% y/y.

The German July Unemployment Change stood at 6K, weaker than expectations of 5K.

The German July Unemployment Rate was 6.4%, weaker than expectations of no change at 6.3%.

Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.72%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +4.03%.

China’s Shanghai Composite Index closed higher today, tracking a tech-led rally across the region. Semiconductor and other AI-linked stocks climbed on Friday. However, the benchmark index’s gains were limited as investors assessed weaker-than-expected PMI data from the country. The National Bureau of Statistics said on Friday that China’s factory activity contracted in July for the first time in five months, weighed down by weaker new orders. China’s non-manufacturing PMI, which covers both services and construction activity, also slipped into contraction territory in July as the prolonged property downturn continued to weigh on growth. ANZ economist Vicky Xiao said that China’s July PMI data signal a sharper-than-expected slowdown in growth, increasing the likelihood of additional policy stimulus, potentially as early as September. Officials of the Chinese Communist Party’s Politburo, a top decision-making body, on Thursday vowed to provide timely and effective policy support but gave few details on further stimulus measures. In corporate news, MiniMax Group jumped over +13% in Hong Kong after the AI company released a new video-generation model capable of processing text, images, video, and audio.

The Chinese July Manufacturing PMI came in at 49.2, weaker than expectations of 49.9.

The Chinese July Non-Manufacturing PMI arrived at 49.0, weaker than expectations of 50.0.

Japan’s Nikkei 225 Stock Index closed sharply higher today as investors returned to the AI trade following this week’s rout. Chip and other AI-related stocks rallied on Friday after upbeat earnings from major U.S. tech companies helped ease investor doubts about the viability of heavy AI investments. Nikkei heavyweights Advantest and SoftBank Group surged more than +16% and +13%, respectively. The benchmark index held onto its gains after the Bank of Japan left its policy rate unchanged at 1.00%, as widely expected, as it evaluates how its latest rate hike is affecting the economy and inflation trends. Board member Hajime Takata was the lone dissenter, advocating for a rate hike to 1.25%. At the same time, the central bank signaled its determination to keep raising borrowing costs, warning for the first time that underlying inflation could overshoot its target. “There is a risk underlying inflation could deviate above our 2% target as medium- and long-term inflation expectations continue to rise, and firms become more active toward raising prices and wages,” the BOJ said. Governor Kazuo Ueda, speaking at a press conference, expressed growing concern about upside risks to prices and raised the possibility of accelerating the bank’s rate-hike cycle. On the economic front, data released on Friday showed that annual core inflation in the Tokyo metropolitan area accelerated more than expected in July, keeping the central bank on course for further rate hikes. Separate data showed that Japan's industrial production rose in June for the third straight month, while retail sales edged higher, suggesting the economy remained relatively resilient last month. Elsewhere, the yen surged suddenly against the dollar again on Friday. The yen had climbed as much as 3.3% against the dollar in New York trading on Thursday after Japanese authorities reportedly carried out their first intervention in three months to support the struggling currency. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -26.16% to 29.38.

The Japanese July Tokyo Core CPI rose +1.9% y/y, stronger than expectations of +1.8% y/y.

The Japanese June Industrial Production (preliminary) rose +1.3% m/m, stronger than expectations of +1.0% m/m.

The Japanese June Retail Sales rose +0.5% y/y, weaker than expectations of +3.1% y/y.

The Japanese June Unemployment Rate was 2.5%, in line with expectations.

Pre-Market U.S. Stock Movers

Amazon.com (AMZN) jumped over +12% in pre-market trading after the company’s cloud-computing unit, Amazon Web Services, recorded the fastest quarterly revenue growth since 2021 in Q2.

Chip and AI infrastructure stocks climbed in pre-market trading after earnings from U.S. tech giants provided evidence that demand for components powering AI remains robust. Marvell Technology (MRVL) was up over +7%, Sandisk (SNDK) was up more than +6%, and Micron Technology (MU) was up over +4%.

Apple (AAPL) slumped over -7% in pre-market trading after the iPhone maker provided FQ4 revenue growth guidance that fell short of analysts’ expectations.

Coinbase Global (COIN) slid more than -5% in pre-market trading after the cryptocurrency exchange posted weaker-than-expected Q2 results.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Friday - July 31st

ExxonMobil Holdings (XOM), AbbVie (ABBV), Chevron (CVX), Linde (LIN), Eaton Corporation (ETN), Colgate-Palmolive Company (CL), Imperial Oil (IMO), Dominion Energy (D), AngloGold Ashanti (AU), Ares Management (ARES), Cameco (CCJ), Cboe Global Markets (CBOE), Fortis (FTS), T. Rowe Price Group (TROW), Church & Dwight Co. (CHD), nVent Electric (NVT), Moderna (MRNA), Brookfield Renewable Partners (BEP), LyondellBasell Industries (LYB), Magna International (MGA), RBC Bearings (RBC), Franklin Resources (BEN), BridgeBio Pharma (BBIO), BrightSpring Health Services (BTSG), Moog Inc. (MOG.A), Penumbra (PEN), Moog Inc. (MOG.B), Brookfield Renewable (BEPC), IES Holdings (IESC), Federal Realty Investment Trust (FRT), The AES Corporation (AES), Lear Corporation (LEA), AutoNation (AN), Brookfield Business (BBUC), Gates Industrial Corporation (GTES), TXNM Energy (TXNM), Perimeter Solutions (PRM), Portland General Electric Company (POR), Balchem (BCPC), MiniMed Group (MMED), TransAlta (TAC), Kyivstar Group (KYIV), Trump Media & Technology Group (DJT), WisdomTree (WT), Newell Brands (NWL), Proto Labs (PRLB), Carter's (CRI), Perella Weinberg Partners (PWP), Saul Centers (BFS), IRADIMED CORPORATION (IRMD), Oppenheimer Holdings (OPY), EyePoint (EYPT), Arbor Realty Trust (ABR).