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.

Traders work on the floor of the New York Stock Exchange on July 23, 2025. (NYSE)

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.

S&P 500 Touches New Peak as Investor Confidence Grows

Major U.S. stock indexes surged toward a successful week, buoyed by encouraging economic indicators and a wave of better-than-expected corporate earnings. The S&P 500 briefly scaled an all-time high on Friday before a slight pullback, as investors evaluated the latest financial reports and economic news.

Investor Sentiment Boosted by Economic Indicators

Consumer apprehension regarding tariff-related inflation has diminished to its lowest point since February. The University of Michigan’s Survey of Consumers for July revealed a 1.8% increase in overall consumer sentiment compared to June, reaching 61.8, which met expectations and marked the highest level since February.

Key Companies Drive Market Movement

While the S&P 500 registered a marginal 0.1% dip, the Nasdaq Composite also saw a similar 0.1% decline. The Dow Jones Industrial Average lagged, shedding 192 points, or 0.4%. A significant contributor to the Dow’s retreat was American Express, which experienced a 3% drop following its earnings release.

In corporate news, PepsiCo and United Airlines shares saw notable gains after both companies surpassed analyst earnings expectations. These positive results follow strong performances from major financial institutions earlier in the week, including JPMorgan and Goldman Sachs.

Conversely, Netflix shares fell 4%, despite also beating earnings estimates. Similarly, 3M saw a slight decrease in its stock price, even after exceeding analysts’ projections for both revenue and profit.

Expert Outlook on Market Dynamics

The current market climate is characterized by increased investor appetite for risk. Regarding potential Federal Reserve rate adjustments, expert opinions suggest a complex scenario.

“It’s a risk-on environment, and while there’s chatter about Fed cuts, the reality is more nuanced. Historically, bull cycles tend to perform better without rate cuts and the first cut is often a bearish signal, though there’s a valid case to be made this time around, especially with inflation cooling and GDP growth projections still intact after we got through the threat of massive tariffs.”

—Ken Mahoney, CEO at Mahoney Asset Management

Globally, the benchmark Brent crude oil price has recently stabilized around $80 per barrel, reflecting ongoing geopolitical tensions and supply considerations, adding another layer to economic forecasting.

Traders are seen working on the floor of the New York Stock Exchange (NYSE) at the opening bell.

Overall, the week has been positive for major U.S. stock indexes, with the S&P 500 gaining 0.8%, the Nasdaq advancing 1.8%, and the Dow Jones Industrial Average showing a 0.2% increase.

Union Pacific Corp

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