Futures Storm To Another Record High After Blowout Tech Earnings

US equity futures are soaring, driven by blowout earnings from Meta and Microsoft, signaling the sustained strength of the AI trade. Traders are optimistic that Apple and Amazon will deliver similar positive results. Meta's shares surged over 11% after a strong revenue forecast and better-than-expected second-quarter earnings, while Microsoft's stock rallied over 8% on robust results, particularly in its cloud business. These gains are helping investors overlook Fed Chair Powell's hawkish tone and trade tariff concerns. Major tech stocks, including Nvidia, Amazon, and Apple, are also seeing premarket gains. Several other companies reported significant stock movements, with Alignment Healthcare, Applied Digital, Carvana, CVS Health, EBay, Norwegian Cruise, TransMedics, and Western Digital posting gains, while Arm Holdings, Confluent, Datadog, Qualcomm, Shake Shack, and Tronox Holdings experienced declines. The market is also anticipating key economic data, including PCE, Jobless Claims, and Personal Income/Spending reports. Microsoft is on track to potentially reach a $4 trillion market cap, mirroring Nvidia's recent achievement, fueled by significant capital expenditure plans for AI. The positive corporate earnings are bolstering market confidence amidst global trade tensions and central bank decisions. European stocks saw a mixed performance, with Rolls-Royce, BBVA, Safran, Argenx, Societe Generale, Shell, and Rentokil rising, while AB InBev, Sanofi, Accor, Eramet, and Straumann fell. Asian equities experienced a losing streak, with declines in China and Hong Kong, though Tokyo stocks bucked the trend. The Japanese yen weakened against the dollar after the Bank of Japan maintained its policy rate, while the dollar index traded at its highest levels since May.