Tech stock earnings boost US stocks, Microsoft rises nearly 9%, Meta rises 12%, and the dollar retreats

Wallstreetcn
2025.07.31 23:05
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Global stock markets rose, as strong earnings reports alleviated investors' concerns about corporate profits, providing support for the market. In pre-market trading, Qualcomm fell 4.7% due to weak mobile business, AMD rose 3%, NVIDIA increased by 2%, and Advanced Micro Devices rose over 2%. The European Stoxx 600 index rose 0.4%, and the dollar retreated from its highs since May

Global stock markets rose, with strong earnings reports alleviating investors' concerns about corporate profits and providing momentum support for the market. The dollar weakened, giving back gains from the previous day after the Federal Reserve Chairman hinted at a reduced likelihood of a rate cut in September.

On Friday, the 31st, the European Stoxx 600 index rose 0.4%, U.S. stock futures surged, with S&P 500 futures up 1.1%, and Nasdaq 100 futures up 1.5%. Microsoft rose nearly 9%, Meta rose 12%, Qualcomm fell 4.7% due to weak mobile business, AMD rose 3%, NVIDIA rose 2%, and Advanced Micro Devices rose over 2%.

The dollar retreated from its highs since May. The Bank of Japan maintained its benchmark interest rate but raised its inflation forecast, with the yen falling below the 200-day moving average of 149.59.

  • In pre-market trading, Microsoft rose nearly 9%, with a 24% year-on-year increase in net profit for the fourth fiscal quarter; Meta rose 12% in pre-market trading, with a 36% year-on-year increase in net profit for the second quarter. Qualcomm fell 4.7% due to weak mobile business, AMD rose 3%, NVIDIA rose 2%, and Advanced Micro Devices rose over 2%. Arm fell 7.24% in pre-market trading, with a 42% year-on-year decline in net profit for the first fiscal quarter.
  • The German DAX 30 index opened up 0.41%. The UK FTSE 100 index opened up 0.05%. The French CAC 40 index opened up 0.32%. The European Stoxx 50 index opened up 0.29%.
  • The U.S. dollar spot index changed little.
  • The yen fell below the 200-day moving average of 149.59, while the euro rose 0.3% to 1.1441 USD.
  • The yield on the 10-year U.S. Treasury bond fell 3 basis points to 4.34%.
  • Bitcoin rose 1.3% to 118,645.2 USD.
  • Spot gold rose 0.8%, reported at 3,301.94 USD/ounce.
  • Brent crude oil changed little.

Tech Giants' Earnings Boost Market Confidence

After Microsoft and Meta released strong earnings reports, the stock prices of both companies surged in after-hours trading. Microsoft's stock rose over 8% in after-hours trading, while Meta rose over 11%, with both companies committing to significant investments in the field of artificial intelligence.

In pre-market trading, Microsoft rose nearly 9%, with a 24% year-on-year increase in net profit for the fourth fiscal quarter; Meta rose 12% in pre-market trading, with a 36% year-on-year increase in net profit for the second quarter. Qualcomm fell 4.7% due to weak mobile business, AMD rose 3%, NVIDIA rose 2%, and Advanced Micro Devices rose over 2%. Arm fell 7.24% in pre-market trading, with a 42% year-on-year decline in net profit for the first fiscal quarter.

Karen Georges from Ecofi, a fund management company, stated:

"What really drives the market is the strong performance from the U.S. We need the seven tech giants to deliver good results this quarter to maintain the upward momentum throughout the summer."

Microsoft announced it will invest over 30 billion USD in the current quarter to build data centers supporting artificial intelligence services. Meta stated it will leverage its profitable advertising business to increase investment next year, with executives believing now is the time to seize investment opportunities in artificial intelligence Apple and Amazon will announce their earnings reports later on Thursday.

Trade Policy Impact on Market Reaction

With less than 24 hours remaining until the August 1 tariff deadline, global trade negotiations have entered a heated phase. Delegations from several major U.S. trading partners are gathering in Washington for intense final negotiations with the Trump administration. According to CCTV News, on July 15 local time, U.S. President Trump stated that the imposition of tariffs would begin on August 1.

The boosting effect of trade agreements on the stock market is weakening, and investors are showing signs of fatigue. A series of trade agreements, including the U.S.-Europe agreement reached over the weekend, have had a muted reaction, indicating that the ability of Trump's trade measures to stimulate significant market reactions is steadily declining

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