Markets Eye Gains as Earnings Season Delivers Mixed Signals

Futures Point Upward After Previous Session’s Losses

Wall Street investors are anticipating a brighter start to trading Wednesday, with stock futures indicating positive movement. This follows a challenging session that saw major indices end in the red, as market participants digest a new wave of corporate financial reports.

Corporate Giants Show Divergent Fortunes

Futures contracts for the S&P 500 showed a modest gain of 0.1%, while the Dow Jones Industrial Average futures climbed 118 points, a 0.3% increase. The Nasdaq 100 futures also nudged higher by approximately 0.1%.

Among the early standout performers, McDonald’s shares surged 3%. The fast-food giant’s second-quarter earnings surpassed analyst expectations on both revenue and profit, further bolstered by same-store sales growth that represented the chain’s strongest performance in nearly two years.

Arista Networks also experienced a significant boost, with its stock rallying 11% following the release of a report that exceeded projections.

Conversely, Snap’s stock plummeted 18% after its quarterly revenue fell slightly short of anticipated figures. Advanced Micro Devices (AMD) also saw its shares drop around 6% after its adjusted earnings per share missed analyst consensus.

Previous Day Recap: Tech Stocks Dragged Down Indices

These pre-market movements come after a difficult trading day Tuesday. The S&P 500 concluded its session lower, marking its fifth down day in the past six. Similarly, the Dow Jones Industrial Average recorded its sixth consecutive negative session.

Technology stocks were particularly weak, contributing to a nearly 0.7% decline in the Nasdaq Composite. However, smaller capitalization stocks managed to outperform, with the Russell 2000 index posting a 0.6% gain.

“We just need some digestion,” said Keith Lerner, co-chief investment officer at Truist Wealth. “Markets don’t move in a straight line. … But, overall, I still think the underlying trend is positive.”

Analysts suggest the market is in a period of adjustment. For instance, the S&P 500 has seen a notable increase in volatility, with the VIX index, a key measure of expected volatility, averaging 17.5 in the past month, compared to an average of 13.2 in the preceding month, according to Cboe Global Markets data (Cboe 2025).