US Stock Market Outlook: Indices Rise, Meta and Microsoft Surge Ahead of Inflation Data.
US Stock Market Update
Pre-Market Trends
On Thursday, US stock futures showed a positive trend across the board, with Nasdaq futures rising approximately 1.3%. The core PCE price index for June is set to be released at 20:30 Beijing time. The previously announced annualized quarterly core PCE index for Q2 exceeded expectations, indicating a potential inflation rebound in June. However, if the upcoming data falls short of expectations, it may increase bets for a rate cut in September.
Major Tech Stocks Performance
Most major tech stocks showed strength in pre-market trading:
- Meta Platforms (META) surged nearly 12%.
- Microsoft (MSFT) rose over 8%.
- Amazon (AMZN) and NVIDIA (NVDA) both increased by more than 2%.
Several Chinese concept stocks also performed well:
- TAL Education (TAL) up over 10%.
- Kingsoft Cloud (03896.HK) up over 7%.
- Bilibili (BILI), GDS Holdings (GDS), and Pony.ai (PONY) all rose over 2%.
Microsoft Reports Strong Earnings
Microsoft reported its Q4 FY2025 earnings, showcasing impressive growth driven by AI cloud services. The stock jumped over 8% in pre-market trading, nearing a market cap of $4.1 trillion, making it the second company to reach this milestone after NVIDIA. Key figures include:
- Q4 revenue: $76.44 billion, up 18% YoY.
- Net profit: $27.2 billion, up 24%.
- Azure revenue: $29.88 billion, up 26%.
CEO Satya Nadella emphasized that cloud and AI are key drivers for business transformation across industries.
Meta's Impressive Financial Results
Meta Platforms also released its Q2 financial report, exceeding expectations across the board, leading to a nearly 12% pre-market surge. Highlights include:
- Q2 revenue: $47.52 billion, up 22% YoY.
- Diluted EPS: $7.14, up 38% YoY.
- Q3 revenue forecast: between $47 billion and $50.5 billion.
Meta is increasing its capital expenditure forecast for 2025, anticipating continued growth in social media advertising to support AI investments.
Quantum Computing Insights
Microsoft's CEO indicated that quantum computing will be the next significant accelerator for cloud computing, boosting related stocks in pre-market trading:
- Rigetti Computing (RGTI) up over 7%.
- D-Wave Quantum (QBTS) and Arqit Quantum (ARQQ) up around 6%.
Other Notable Pre-Market Movements
- Carvana (CVNA) surged over 15% due to better-than-expected Q2 profits and revenue.
- Applied Digital (APLD) jumped 24% amid strong demand for cloud services.
- WeRide (WRD) reported Q2 revenue of 127 million yuan, up 60.8% YoY.
Regulatory Developments
The National Internet Information Office of China has raised concerns regarding security risks associated with NVIDIA's H20 computing chips, prompting discussions with the company.
Tesla's New Robotaxi Service
Tesla has launched a "human-driven" Robotaxi service in California, differing from its autonomous service in Austin. CEO Elon Musk announced the service, which is currently limited to invited users.
IPO Market Revival
Design software company Figma successfully raised $12.2 billion in its IPO, signaling a resurgence in investor interest in tech IPOs after a prolonged downturn.
Federal Reserve's Rate Decision
The Federal Reserve maintained its interest rate at 4.25% to 4.50%, facing pressure from the Trump administration to cut rates. This marks the fifth consecutive meeting where rates have remained unchanged.
Conclusion
The US stock market is showing positive signs with major tech companies reporting strong earnings, while regulatory and economic factors continue to influence market dynamics.
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