US stock futures hit session low, Nasdaq 100 futures fall 0.9%

US stock futures hit session low, Nasdaq 100 futures fall 0.9%

US stock futures experienced a significant drop during the session, with Nasdaq 100 futures declining by 0.9%. This downturn comes after a series of strong earnings reports from tech giants Microsoft and Meta Platforms. Despite the positive earnings, the market was influenced by various factors including trade deals and economic indicators.

Microsoft reported better-than-expected quarterly earnings, with its cloud computing service Azure exceeding $75 billion in annual revenue. Meanwhile, Meta issued an upbeat third-quarter sales outlook, surpassing the Street's estimates, leading to a significant jump in its stock price [1]. These robust performances from the tech giants were expected to drive the market higher, but other economic indicators and trade deals played a significant role in the market's direction.

The S&P 500 closed lower on Wednesday, shedding 0.12%, while the Dow Jones Industrial Average lost 171.71 points, or 0.38%. The Nasdaq Composite notched a 0.15% gain. The Federal Reserve left its benchmark overnight policy rate steady at its July meeting, with Fed Chair Jerome Powell indicating that the central bank is still not ready to cut interest rates [3]. This stability in monetary policy contributed to the market's cautious outlook.

More earnings reports are scheduled for Thursday, including those from Comcast, Bristol-Myers Squibb, Cigna, CVS Health, Shake Shack, AbbVie, and Mastercard. Additionally, results from Apple and Amazon are expected in the afternoon [3]. The market is closely watching these earnings reports, as they could provide further insights into the economic health and future growth prospects of major companies.

The trade deal negotiations with South Korea also influenced the market. President Donald Trump announced that the U.S. had reached a trade deal with South Korea, setting tariffs at 15%, lower than the 25% rate threatened earlier this month [1]. This development could impact trade dynamics and consumer sentiment, potentially affecting stock prices.

In summary, while the earnings reports from Microsoft and Meta provided a boost to the market, other factors such as trade deals and economic indicators led to a downturn in US stock futures. The market remains cautious and is closely watching upcoming earnings reports and trade developments.

References:
[1] https://www.ainvest.com/news/stock-futures-rise-strong-earnings-meta-microsoft-2507/
[2] https://www.nasdaq.com/articles/sp-500-and-nasdaq-100-set-fresh-record-highs-strong-tech-earnings
[3] https://www.cnbc.com/2025/07/30/stock-market-today-live-updates.html