Wall Street futures for the S&P 500 and Nasdaq 100 surged to record highs on July 31, 2025, following stronger-than-expected earnings from Meta and Microsoft, as well as continued enthusiasm around AI investments 

• Meta stock jumped approximately 11.5% in pre-market trading after raising its Q3 revenue guidance, attributing growth to AI-enhanced advertising.

• Microsoft shares rose 8.3%, supported by robust results in its Azure cloud business and a $30 billion capital spending forecast for the quarter 

• Other tech heavyweights such as Amazon and Nvidia also posted gains (~+3.2% and +1.6%, respectively), contributing to broad spirited market momentum.

At 5:53 a.m. ET, Dow E minis climbed 151 points (0.34%), Nasdaq 100 E minis gained 302.5 points (1.29%), and S&P 500 E minis advanced 60.5 points (0.95%) 

Investor sentiment also benefited from easing trade tensions, including a tentative U.S.–EU trade deal and other emerging trade agreements 

However, caution remained, as Federal Reserve Chair Jerome Powell downplayed the likelihood of a rate cut in September, citing strong Q2 GDP growth and a currently non-restrictive monetary stance. Markets awaited key economic releases like the June PCE inflation report and July non-farm payrolls to shed further light on inflation and labor conditions 

Why This Matters

• AI remains a key growth driver: Meta and Microsoft’s stellar earnings underscore how AI is enhancing advertising, cloud services, and corporate investment.

• Policy uncertainty lingers: The Fed’s cautious tone suggests interest rates may stay elevated longer, while upcoming data releases will influence the next moves.

• Trade developments are influencing sentiment: Easing of tariffs, especially from the U.S.–EU deal, has boosted market confidence heading into earnings season.