U.S. equity futures climbed on Thursday evening, extending a recovery that began during regular trading as investors reacted to stronger-than-expected results from major technology companies. The advance in futures came despite a sharp aftermarket decline in Apple, which tempered the market’s overall upside.
Futures snapshot - By 20:10 ET (00:10 GMT), S&P 500 futures had risen 0.26% to 7,491.75 points. Nasdaq 100 futures gained 0.7% to 28,440.0, while Dow Jones futures were up 0.2% at 52,506.0 points.
Drivers of sentiment - Earnings from Amazon.com Inc. and Microsoft provided the primary catalyst for the late-day optimism. Amazon jumped in aftermarket trading, rallying 9.4% after reporting a June quarter that beat expectations. Its cloud unit, AWS, registered its fastest pace of growth in 18 quarters and the company said both its artificial intelligence and custom chip initiatives were gaining momentum.
Microsoft’s positive quarterly report, released earlier in the week, had already helped lift confidence in AI-related investments and drew capital back into technology and semiconductor stocks.
At the same time, however, Apple Inc. slid more than 6% in aftermarket trading. The iPhone maker reported mixed results where strong sales of its flagship device were offset by weaker-than-expected demand in China and softer services revenue. Apple also issued a revenue growth forecast for the current quarter of 9% to 11% year-on-year, below the Wall Street consensus of 12%.
Apple warned of growing supply-chain headwinds driven by rising memory and component costs, a situation the company attributed in part to elevated demand tied to AI that has tightened global supplies.
Market breadth and sector moves - On Thursday’s session, major U.S. indexes posted solid gains: the S&P 500 rose 1.7%, the Dow Jones Industrial Average climbed 1.2%, and the Nasdaq Composite advanced 2.8%. Technology stocks outperformed, and chipmakers led the rally with the Philadelphia Semiconductor Index jumping 8.2%.
Investors largely shrugged off an 8% drop in Meta Platforms after that company raised its annual capital-expenditure guidance amid continued heavy AI spending. Nonetheless, the earlier carnage in chip-related names left markets on track for monthly declines.
July performance - Despite Thursday’s rebound, major averages were still positioned to finish July in the red. The S&P 500 was set to lose about 0.8% for the month, the Dow about 0.2%, and the Nasdaq was the laggard with a roughly 4.2% decline, reflecting broad weakness in tech and semiconductor valuations over much of the month.
Geopolitical and policy context - Sentiment was helped by reports that talks between Tehran and Oman over the Strait of Hormuz had eased some immediate geopolitical concerns. Market confidence also received a lift following an announcement by U.S. President Donald Trump about a disarmament agreement in Gaza.
Outlook - The juxtaposition of strong AI-related earnings at companies such as Amazon and Microsoft with Apple’s more cautious top-line outlook and supply warnings left the market navigating competing signals. Technology and semiconductor shares remain the focal point for near-term direction, while geopolitical developments and corporate supply-chain dynamics present continuing uncertainties.