Markets Brace for Trump’s Fed Visit Amid Tech Earnings Mix

Dow Futures Dip as Alphabet Shines, Tesla Falters

U.S. stock futures saw a mixed early showing Thursday, as investors digested a varied batch of Big Tech earnings and watched for developments in President Donald Trump’s ongoing dispute with the Federal Reserve.

Tech Giants Deliver Divergent Results

Early Thursday, S&P 500 futures edged up 0.12%, and Nasdaq 100 futures climbed 0.36%. However, futures tied to the Dow Jones Industrial Average fell by 133 points, or 0.29%. This divergence followed earnings reports from tech titans Alphabet and Tesla. Alphabet’s stock surged 3.5% after reporting stronger-than-expected second-quarter earnings and revenue. Conversely, Tesla shares dropped 6% in active trading, reflecting investor disappointment over a second consecutive quarterly decline in automotive revenue.

Adding to the pressure on Dow futures, IBM shares declined 5% after the company’s second-quarter software revenue failed to meet analyst expectations.

Political Spotlight Turns to Federal Reserve

On the political front, President **Donald Trump** is scheduled to visit the Federal Reserve on Thursday, intensifying his public campaign against Fed Chair **Jerome Powell**. This marks the first presidential visit to the central bank in nearly two decades, a move that is likely to capture significant market attention.

Anticipation Builds for Key Economic Data and Earnings

Several major companies, including Honeywell, American Airlines, and Union Pacific, are set to release their earnings reports before the market opens today. Investors will also be closely monitoring a raft of economic data, including weekly jobless claims, the final July purchasing managers’ index readings, and June’s new home sales figures.

Markets on Wednesday experienced a robust rally, largely propelled by positive news on international trade negotiations. The S&P 500 index gained 0.78%, reaching its twelfth record close of the year. The Dow Jones Industrial Average advanced 1.14%, closing within a few points of a new all-time high. The Nasdaq Composite also saw a significant boost, rising 0.61% to settle above the 21,000 mark for the first time.

Earlier this week, **President Trump** announced a substantial trade agreement with Japan, including a 15% reciprocal tariff on goods. Reports from The Financial Times and Bloomberg also indicated progress toward a U.S.-EU trade deal, potentially featuring similar 15% tariffs on goods entering the United States from the bloc. These developments in trade policy are seen as positive catalysts for investor sentiment. According to data from the Bureau of Labor Statistics, U.S. goods and services exports totaled $2.8 trillion in 2024, underscoring the importance of international trade agreements.

“We’re beginning to see some clarity here with these deals being made, and that’s certainly bullish. And certainly that keeps the momentum going in the stock market.”

—Jeremy Siegel, Professor of Finance at the Wharton School and Senior Economist at WisdomTree

Jeremy Siegel, Professor of Finance at the Wharton School and Senior Economist at WisdomTree, commented on Wednesday that the clarity emerging from these trade agreements is bullish and contributes to the ongoing momentum in the stock market.