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LivestreamMenuA television station broadcasts Kevin Warsh, chairman of the US Federal Reserve, speaking after a Federal Open Market Committee (FOMC) meeting as a trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, July 29, 2026. Michael Nagle | Bloomberg | Getty Images
U.S. equity futures rose Wednesday night as investors digested the latest Big Tech earnings and the Federal Reserve’s decision to hold rates steady.
Futures tied to the Dow Jones Industrial Average added 147 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures were up 0.3% each.
In regular trading, the Dow Jones Industrial Average dropped 1,153.18 points, or 2.19%, marking the blue chip index’s worst decline since April 2025. The broad market S&P 500 slid 1.52%. The Nasdaq Composite fell 1.74%, ending the session more than 10% off its intraday record.
Meta Platforms took center stage after its quarterly results heightened investor scrutiny of its AI monetization efforts, with shares falling 8% in after-hours trading. Microsoft, by contrast, jumped 9% after reporting stronger enterprise demand, underscoring a widening divergence in how Big Tech’s AI strategies are playing out.
“This is ultimately a tale of two AI investment strategies. One company is increasing profits while spending heavily, while the other is allowing those costs to eat into its bottom line,” said Stephen Evans, chief investment officer at Pave Finance.
“Microsoft’s results suggest concerns about slowing growth may have been overstated, particularly after the pressure its shares have faced,” he added. “Meta’s advertising business remains strong, but it must now demonstrate greater cost control and more consistent returns from its investment before confidence fully returns.”
Traders were also weighing the Federal Reserve’s decision after Wednesday’s meeting to leave interest rates unchanged, which sent long-dated Treasury yields sharply higher. The 30-year Treasury yield soared 10 basis points to above 5.2%, hitting its highest level since 2007.
“The Fed remains patient [and in] a wait-and-see mode, and will continue to monitor how the economy evolves in the upcoming months,” said Sameer Samana, Wells Fargo Investment Institute’s head of global equities and real assets. “This leaves the September meeting ‘live’ as an opportunity for the Fed to act if supported by the incoming data to appease rising inflation pressures.”
On Thursday, traders will be watching for weekly jobless claims and the personal consumption expenditures price index reading for June. The Dow Jones consensus calls for headline inflation to have grown at an annual rate of 3.7%. Excluding volatile energy and food, they anticipate it will have risen 3.3%.
One of the busiest weeks of corporate earnings continues Thursday with Bristol-Myers Squibb set to report before the bell. Amazon, Apple and Coinbase are on deck for after the close.
13 Min Ago
Microsoft gains accelerate after it boosts capital spending plans, citing demand
Shares of Microsoft rallied 7% in extended trading after the company’s finance chief, Amy Hood, said she sees further growth in capital expenditures for the 2027 fiscal year, pointing to “demand signals across our portfolio.” She also reiterated plans for 2026 capital spending.
Capital expenditures and finance leases for the fiscal fourth-quarter, at $41 billion, jumped 69%.
For 2026, the company said it will lengthen the useful life of office and data center buildings to 25 years from 15. And more future data center leases will change over to operating leases from finance leases, she said. The adjustment will lead to roughly $175 billion in capital expenditures.
Read the full story here.
— Tanaya Macheel
21 Min Ago
Wait-and-see Fed signals higher-for-longer rates, says Wells Fargo’s Samana
Sameer Samana, Wells Fargo Investment Institute’s head of global equities and real assets, said a rate change in September is still possible as the Federal Reserve will continue monitoring economic data to see if inflation remains a concern. For investors, this means interest rates are likely to stay elevated for a while, making short- and medium-term bonds more attractive than long-term bonds, which carry greater interest rate risk, he said.
“Today’s meeting supports maintaining a higher-for-longer interest-rate outlook,” Samana said. “Short- and intermediate-maturity bonds continue to offer more attractive yields relative to potential interest rate-risks in the long-end of the curve.”
— Tanaya Macheel
27 Min Ago
Stocks making the biggest moves after hours
Here are three stocks making big moves in extended trading:
- Meta Platforms — Shares tumbled almost 9% after the company posted earnings per share of $6.18 for the latest quarter, missing analysts’ estimates by $1.04 per share, according to LSEG. It also forecasted third quarter revenue between $61 billion and $64 billion, the lower end of which is lighter than the $63.15 billion estimated by analysts.
- Microsoft — Shares jumped 9% after the company reported quarterly revenue of $90.01 billion, topping estimates of $87.62 billion, per LSEG. Azure growth of 43% at constant currency beat StreetAccount estimates of 40.2% growth. The company also said Azure revenue in the 2026 fiscal year surpassed $100 billion for the first time.
- Fortinet — The cybersecurity stock soared more than 12% as strong second-quarter billings helped the company to outpace analyst estimates. Fortinet earned 90 cents per share after adjustments on revenue of $2.05 billion. Analysts surveyed by LSEG predicted it would earn 75 cents per share on $1.89 billion. Its third-quarter forecast also solidly topped Wall Street’s expectations.
- Qualcomm — The chipmaker saw its shares fall more than 7% on mixed quarterly results. Adjusted earnings of $2.21 per share were slightly off the analyst estimate of $2.23 per share, according to LSEG. Revenue of $9.95 billion beat the estimate of $9.67 billion.
For more, read our full list here.
— Tanaya Macheel
36 Min Ago
Stock futures open little changed
U.S. equity futures were little changed at the start of trading Wednesday night.
Futures tied to the Dow Jones Industrial Average were up by 71 points, or 0.1%. S&P 500 futures edged lower by 0.06% and Nasdaq 100 futures fell 0.1%.
— Tanaya Macheel
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