Stock Futures Rise Amid Tech Gains and Tariff Updates

Stock Market Performance and Key Drivers

U.S. stock futures advanced on Thursday, with gains led by the tech-heavy Nasdaq Composite, which rose 0.8% in premarket trading. Futures tied to the S&P 500 and Dow Jones Industrial Average also climbed, gaining 0.6% and 0.4%, respectively. The rally was fueled by optimism surrounding recent tariff carveout announcements for semiconductor companies, which bolstered investor sentiment in the tech sector.

Apple Inc. shares surged 3% premarket, adding to a 5% gain from the previous session, as CEO Tim Cook announced a $100 billion U.S. manufacturing investment plan. Semiconductor stocks, including Nvidia and Broadcom, rose 1.5%, while the VanEck Semiconductor ETF gained 2%. These moves followed President Trump's indication that U.S.-based chip manufacturers could avoid tariffs, driving further momentum in the sector. Conversely, Intel's stock dipped 3% after reports raised questions about its leadership and potential conflicts of interest.

Economic Data and Federal Reserve Outlook

Inflation concerns continued to weigh on the Federal Reserve's interest rate strategy. The Consumer Price Index (CPI) is expected to rise 3.2% by 2025, significantly above the Fed's target of 2%, according to Wells Fargo projections. While market participants are pricing in a 93.2% probability of a rate cut in September, some analysts, such as Scott Wren of Wells Fargo, caution that rising inflation could prompt the Fed to delay any policy easing.

Treasury yields reflected mixed economic signals. The 10-year Treasury bond yield remained steady at 4.23%, while the 2-year bond yield settled at 3.71%. Meanwhile, labor market data showed 1.974 million continuing unemployment claims, the highest since November 2021, underscoring challenges in job recovery. Initial jobless claims also increased to 226,000 for the week ending August 2, further complicating the economic outlook.

Corporate Earnings and Sector Highlights

Eli Lilly's stock fell 7% in premarket trading after the company reported disappointing results from a late-stage trial of its oral GLP-1 weight-loss drug. This overshadowed its otherwise strong Q2 earnings, which beat expectations with $15.56 billion in revenue versus the anticipated $14.69 billion. The pharmaceutical giant's weight-loss drug sales increased 46% in volume but were offset by an 8% decline in prices.

The tech and consumer discretionary sectors were the top performers, with Apple and Uber leading gains. Uber's stock jumped after reporting better-than-expected Q2 results. On the other hand, consumer staples and healthcare sectors lagged, reflecting a more selective investment environment. Overall, robust corporate earnings and tariff-related news have provided critical support to market sentiment despite ongoing macroeconomic uncertainties.