Stocks closed Thursday’s session down but capped a month of gains as the clock ticked down to President Trump’s tariff deadline. Wall Street also awaited more key earnings salvos from Big Tech after strong Meta (META) and Microsoft (MSFT) earnings boosted faith in massive AI investments.
The Nasdaq Composite (^IXIC) fell below the flatline, erasing earlier session gains of over 1%. The S&P 500 (^GSPC) fell 0.4%. The Dow Jones Industrial Average (^DJI) lagged, sliding about 0.7%.
After notching a series of all-time high closes in July, the S&P 500 and Nasdaq closed out the month with gains of roughly 2.3% and 3.7% respectively. It was the third straight month of gains for the S&P 500 and fourth in a row for the Nasdaq. The Dow closed out the month little changed.
Investors recalibrated toward the tail end of a furious week of earnings and economic datapoints. Trump’s tariffs are set to go into effect Friday, when new deals will come into effect and with the president set to outline terms for the rest of the US’s trade partners. Trump said Wednesday that he had extended current tariff rates with Mexico, the US’s largest partner, another 90 days while the countries work toward a bigger deal.
Meanwhile, the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) released on Thursday morning showed price increases accelerated in June as inflation remained above the Fed’s 2% target.
The release comes after the Fed held interest rates steady following its two-day policy meeting on Wednesday, with two Fed governors dissenting.
Following the decision, Fed Chair Jerome Powell stressed “no decisions” had been made about a September rate cut. Bets on a September slash fell below 40% on Thursday, according to the CME Group, down from about 60% before the meeting.
On the docket for Friday is the key jobs report, which looms as another key signal of the US economy’s health.
The developments somewhat overshadowed blowout earnings from Big Tech. Meta (META) stock shot up over 11%, as investors welcomed its earnings beat and stronger-than-expected guidance even as it ramps up its AI spending spree. Microsoft (MSFT) stock jumped as much as 8% before paring gains after its impressive results, which pushed the tech giant’s market capitalization above $4 trillion.
Markets are now looking to after-hours results from their “Magnificent Seven” peers, Apple (AAPL) and Amazon (AMZN).
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Amazon Q2 earnings come in above Wall Street expectations as AWS grows 17%
Stocks little changed ahead of Trump tariff deal deadline
Stocks closed lower as President Trump’s tariff deal deadline approached and investors awaited more key earnings from Big Tech players after blowout quarters from (META) and Microsoft (MSFT).
The Nasdaq Composite (^IXIC) fell below the flatline while the S&P 500 (^GSPC) also closed down nearly 0.4% The Dow Jones Industrial Average (^DJI) slid 0.7%.
After notching a series of all-time high closes in July, the S&P 500 and Nasdaq closed out the month with gains of 2.3% and 3.7%, respectively.
However, the markets stalled in the last couple of sessions as the Aug. 1 tariff deadline for US trading partners loomed and the Federal Reserve opted to keep interest rates unchanged for now.
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That’s expected to continue with Friday’s jobs report, which economists project will show the US economy added 104,000 jobs in July. This would mark the lowest monthly job gain since February.
But while monthly job additions have moved lower along with the national hiring rate, so too has the overall number of workers participating in the labor force. This, Fed Chair Jerome Powell said on Wednesday, means the labor market remains balanced.
When asked directly which metric this has Powell watching in the monthly jobs report, the Fed chair said, “the main number you have to look at now is the unemployment rate.”
Looking at a one-year chart entering Friday’s report, that key metric has been relatively steady in what Powell described as a “historically” low range for a year now and is one reason the central bank isn’t rushing to cut interest rates.
Figma stock opens for trade at $85, up 230% from where IPO priced
Figma (FIG) stock surged more than 230% above its initial public offering price after it began trading just before 2:00 p.m. ET on Thursday.
As of 2:15 p.m., shares of the design software company traded at $108 each, well above the IPO price of $33. It was briefly halted nine seconds after trading for volatility.
Apple Q3 earnings to give Wall Street better view of tariff impact, AI top of mind
Apple (AAPL) is scheduled to announce its third quarter earnings after the bell on Thursday, as Wall Street looks for signs of movement on the company’s AI plans and a view into how much tariff-related costs are eating into its margins, Yahoo Finance’s Dan Howley reports.
Reddit shares jumped nearly 5% Thursday morning ahead of the social media’s second quarter earnings report after the bell.
Reddit’s results after the bell Thursday come as Wall Street scrutinizes how changes to Google Search’s algorithm could affect the social media platform’s daily active users, which fell below expectations in the US in the past two quarters.
Wall Street analysts tracked by Bloomberg expect Reddit to report adjusted earnings per share of $0.72, up from last year’s loss per share of $0.06. They project the company’s second quarter revenue to hit $425 million, up 50% from the prior year, according to Bloomberg data.
Analysts expect global daily active users to climb 20% from the prior year to roughly 110 million for the period and US users to rise more than 9% to 50.5 million.
CoreWeave soars after Microsoft reports higher-than-expected capital expenditures
CoreWeave (CRWV) shares surged more than 12% Thursday on the heels of strong earnings reports from two of its customers, Microsoft (MSFT) and Meta (META).
Microsoft is CoreWeave’s largest customer, accounting for 72% of its revenue in the burgeoning cloud provider’s most recent quarterly earnings report. Microsoft spent $88.2 billion in its fiscal year 2025, ahead of the $80 billion it previously forecast. That figure represented a 58% increase in the tech giant’s spending from the prior year.
Microsoft said its spending will grow at a slower pace in its 2026 fiscal year. During the first quarter, it expects to spend $30 billion, a 50% increase from the prior year.
“We will continue to invest against the expansive opportunity ahead across both capital expenditures and operating expenses given our leadership position in commercial cloud, strong demand signals for our cloud and AI offerings, and significant contracted backlog,” Microsoft CFO Amy Hood said in an earnings call with analysts.
Microsoft tops $4 trillion
Microsoft’s (MSFT) market capitalization officially hit the $4 trillion mark Thursday, making it the second company behind Nvidia (NVDA) to achieve the feat.
Shares of Microsoft climbed as much as 8% Thursday morning before paring gains, up roughly 5% shortly after the market opened.
Microsoft, Apple (AAPL), and Nvidia have traded places as the world’s most valuable companies. Nvidia still retains the top spot after a stunning comeback from a rocky first half of the year, with its market cap sitting around $4.4 trillion as of Thursday. Apple’s was just over $3 trillion in morning trading.
S&P 500, Nasdaq surge at the open
The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) surged on Thursday, on track for fresh record highs after strong Meta (META) and Microsoft (MSFT) earnings fueled a spike in tech stocks.
The Nasdaq climbed roughly 1.3%, while the S&P 500 rose 0.8%. The Dow Jones Industrial Average (^DJI) lagged, up less than 0.1%.
Microsoft set to join $4T market cap club, Meta stock surges in post-earnings rally
Microsoft (MSFT) and Meta (META) stocks ripped higher in premarket trading as investors continued to bid up shares following the tech giants’ earnings reports.
Combined, the two stocks have added about half a trillion dollars in market value since Wednesday’s close.
If gains hold, Microsoft is set to join Nvidia (NVDA) in the $4 trillion market capitalization club when the market opens. Its market cap as of Wednesday stood at $3.81 trillion, and the stock has gained nearly 9% in premarket trading.
Meta stock surged 11% ahead of the opening bell. Both Meta and Microsoft reported strong revenue growth that outweighed investors’ concerns about spending on artificial intelligence.
“The stock moves make sense — the results are that good,” D.A. Davidson head of technology research Gil Luria told Yahoo Finance following Meta’s and Microsoft’s earnings. “Meta is gaining significant share in the digital advertising market, … and therefore investors have patience for the capex guidance they’re providing.”
Fed’s preferred inflation gauge shows price increases accelerated in June amid tariff uncertainty
The latest reading of the Federal Reserve’s preferred inflation gauge showed price increases accelerated in June as inflation remained above the Fed’s 2% target.
Roblox stock soars as daily active users surpass 100 million
Roblox’s (RBLX) stock rocketed 20% higher in premarket trading after reporting record daily users and raising its third quarter forecast for bookings.
Daily active users rose 41% in the second quarter to cross 111 million, the company reported on Thursday.
Roblox also raised its forecast for annual bookings in the third quarter to $1.59 billion to $1.64 billion. Bookings for the second quarter came in at $1.44 billion, beating market estimates of $1.24 billion.
Reuters reports that the company has been investing in search and discovery features that allow greater visibility for viral games like “Grow a Garden.” Roblox also aims to diversify its revenue beyond gaming by turning the platform into a hub for socializing, commerce, and advertising.
The platform saw a boost in engagement during the quarter, with engaged hours up 58% to 27.4 billion.
What’s in the US-EU trade deal depends on who is doing the talking
President Trump and European Commission President Ursula von der Leyen shook hands Sunday over a trade agreement. The White House did a victory lap, but days later, there are still plenty of disagreements about exactly what is in the pact.
Here are some top stocks trending on Yahoo Finance in premarket trading:
Arm (ARM) stock fell 6% on Thursday before the bell following the announcement of the chip tech provider’s plan to invest in its own chip development, which would bite into future profits, disappointed investors.
CVS (CVS) stock jumped 7% in premarket on Thursday after the company beat Wall Street estimates for second-quarter profit.
Confluent Inc (CFLT) stock rose over 20% premarket following the company’s positive earnings report. The data streaming platform reported a 21% growth in subscription revenue and a 28% growth in Confluent Cloud revenue for Q2 2025.
Carvana posts higher quarterly profit on record car sales
Shares in Carvana (CVNA) surged over 15% in premarket trading after the online used-car seller defied expectations with strong second quarter results and outlook.
