- Barry Adams
- 30 Jul, 2026
- New York City
U.S. stocks advanced on Thursday as investors reacted to the latest batch of earnings.
The S&P 500 Index increased 0.5%, and the tech-dominated Nasdaq Composite rose 1.1% following the release of quarterly results from key technology companies.
Meta, Microsoft, Qualcomm, Arm Holdings, Starbucks, Coursera, and Chipotle Mexican Grill were in focus after the release of their quarterly results.
Amazon, Apple, and Coinbase are set to release their results after the close of the regular session.
The yield on 10-year U.S. Treasury notes edged up a fraction to 4.79% after the Federal Open Market Committee left its lending rate range unrevised, though three members dissented in favor of a rate hike.
The FOMC left the fed funds rate range unrevised between 3.5% and 3.75% in a 9-3 vote, despite inflation staying well above the Fed's 2% target rate.
The Federal Reserve is lagging, and investors anticipate rates eventually rising by at least 50 basis points amid broadening inflation from the energy to other sectors of the economy.
Across the Atlantic, the Bank of England left its bank rate unchanged at 3.75% in a 6-3 decision, but policy makers noted rising inflationary pressures in the economy.
Although the consumer price inflation has eased to 2.6%, the central bank's policymakers are anticipating higher energy costs to feed through to businesses and households later in the year.
U.S. Movers
Microsoft jumped 9.7% to $428.28 after the software company reported its quarterly results.
Revenue for the fiscal fourth quarter ending in June increased 18% to $90.1 billion, net income surged 31% to $35.8 billion, and diluted earnings per share advanced to
Total cloud revenue surged 27% to $59.3 billion, driven by a 43% increase in Azure and other cloud services revenue, pushing Azure's individual annual revenue past $100 billion for the first time.
Spending on data centers and AI infrastructure came in at about $41 billion, and the company indicated it plans to continue to invest in extending its infrastructure.
Microsoft guided fiscal first quarter revenue to range between $89.85 billion and $90.95 billion, indicating about 16% growth at the midpoint.
Chipotle Mexican Grill increased 7.5% to $36.80 after the company released its second quarter results.
Revenue increased 9.3% to $3.4 billion, net income decreased to $403.5 million from $436.1 million, and diluted earnings per share were flat at 32 cents.
Comparable restaurant sales increased 2.2%, and the company opened 100 new locations across its system.
Meta Platforms dropped 10% to $526.52 after the company reported second-quarter results.
Total revenue increased 28% to $60.8 billion, net income decreased 14% to $15.8 billion from $18.3 billion, and diluted earnings per share declined 13% to $6.18 from $7.14 a year ago.
Meta's free cash flow plunged 91% to $784 million from $8.6 billion a year ago, largely because of the escalating cost of artificial infrastructure.
Capital expenditures soared to $31.1 billion for the quarter, consuming roughly 98% of Meta’s operating cash flow to build out server clusters and new data centers like its $14 billion El Paso, Texas, venture.
Daily Active People users averaged 3.60 billion across its family of apps—Facebook, Instagram, WhatsApp, and Threads—an increase of 3%.
Meta projected third quarter revenue between $61 billion and $64 billion, setting a midpoint ($62.5 billion) slightly below consensus expectations of $63.15 billion.
- Barry Adams
- 30 Jul, 2026
- New York City
U.S. stocks advanced on Thursday as investors reacted to the latest batch of earnings.
The S&P 500 Index increased 0.5%, and the tech-dominated Nasdaq Composite rose 1.1% following the release of quarterly results from key technology companies.
Meta, Microsoft, Qualcomm, Arm Holdings, Starbucks, Coursera, and Chipotle Mexican Grill were in focus after the release of their quarterly results.
Amazon, Apple, and Coinbase are set to release their results after the close of the regular session.
The yield on 10-year U.S. Treasury notes edged up a fraction to 4.79% after the Federal Open Market Committee left its lending rate range unrevised, though three members dissented in favor of a rate hike.
The FOMC left the fed funds rate range unrevised between 3.5% and 3.75% in a 9-3 vote, despite inflation staying well above the Fed's 2% target rate.
The Federal Reserve is lagging, and investors anticipate rates eventually rising by at least 50 basis points amid broadening inflation from the energy to other sectors of the economy.
Across the Atlantic, the Bank of England left its bank rate unchanged at 3.75% in a 6-3 decision, but policy makers noted rising inflationary pressures in the economy.
Although the consumer price inflation has eased to 2.6%, the central bank's policymakers are anticipating higher energy costs to feed through to businesses and households later in the year.
U.S. Movers
Microsoft jumped 9.7% to $428.28 after the software company reported its quarterly results.
Revenue for the fiscal fourth quarter ending in June increased 18% to $90.1 billion, net income surged 31% to $35.8 billion, and diluted earnings per share advanced to
Total cloud revenue surged 27% to $59.3 billion, driven by a 43% increase in Azure and other cloud services revenue, pushing Azure's individual annual revenue past $100 billion for the first time.
Spending on data centers and AI infrastructure came in at about $41 billion, and the company indicated it plans to continue to invest in extending its infrastructure.
Microsoft guided fiscal first quarter revenue to range between $89.85 billion and $90.95 billion, indicating about 16% growth at the midpoint.
Chipotle Mexican Grill increased 7.5% to $36.80 after the company released its second quarter results.
Revenue increased 9.3% to $3.4 billion, net income decreased to $403.5 million from $436.1 million, and diluted earnings per share were flat at 32 cents.
Comparable restaurant sales increased 2.2%, and the company opened 100 new locations across its system.
Meta Platforms dropped 10% to $526.52 after the company reported second-quarter results.
Total revenue increased 28% to $60.8 billion, net income decreased 14% to $15.8 billion from $18.3 billion, and diluted earnings per share declined 13% to $6.18 from $7.14 a year ago.
Meta's free cash flow plunged 91% to $784 million from $8.6 billion a year ago, largely because of the escalating cost of artificial infrastructure.
Capital expenditures soared to $31.1 billion for the quarter, consuming roughly 98% of Meta’s operating cash flow to build out server clusters and new data centers like its $14 billion El Paso, Texas, venture.
Daily Active People users averaged 3.60 billion across its family of apps—Facebook, Instagram, WhatsApp, and Threads—an increase of 3%.
Meta projected third quarter revenue between $61 billion and $64 billion, setting a midpoint ($62.5 billion) slightly below consensus expectations of $63.15 billion.
- Akira Ito
- 30 Jul, 2026
- Tokyo
Stocks in Japan rebounded and reversed 2-day losses, but the weakness in AI trade truncated market gains.
The Nikkei 225 Index increased 0.7%, the broader TOPIX decreased 0.5%, and the Japanese yen weakened to 163.72 against the U.S. dollar.
The yield on 10-year Japanese government bonds increased to 2.78% after the U.S. Federal Reserve left its rates unrevised.
The yield on 10-year U.S. Treasury notes edged up a fraction to 4.78% after the Federal Open Market Committee left its lending rate range unrevised, though three members dissented in favor of a rate hike.
AI-related stocks rebounded, despite the weakness in overnight trading in New York, after Advantest Corp. reported better-than-expected results in its latest quarter.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.7% to 61,867.43, and the broader TOPIX fell 0.5% to 3,952.50.
Advantest Corp. soared 11% to ¥27,935.0 after the chip-testing equipment maker lifted its annual operating profit outlook by 35%, supported by strong demand driven by artificial intelligence infrastructure.
The market rally spread to other AI-related stocks after Advantest released its results.
Tokyo Electron increased 4.4% to ¥52,240.0, Murata Manufacturing advanced 2.9% to ¥6,416.0, and Ibiden Corp. gained 1.4% to ¥13,650.0.
SoftBank Group fell 2.5% to ¥4,622.0 after its subsidiary Arm Holdings PLC plunged 6.6% to $209.93 on weaker-than-expected sales estimates.
- Akira Ito
- 30 Jul, 2026
- Tokyo
Stocks in Japan rebounded and reversed 2-day losses, but the weakness in AI trade truncated market gains.
The Nikkei 225 Index increased 0.7%, the broader TOPIX decreased 0.5%, and the Japanese yen weakened to 163.72 against the U.S. dollar.
The yield on 10-year Japanese government bonds increased to 2.78% after the U.S. Federal Reserve left its rates unrevised.
The yield on 10-year U.S. Treasury notes edged up a fraction to 4.78% after the Federal Open Market Committee left its lending rate range unrevised, though three members dissented in favor of a rate hike.
AI-related stocks rebounded, despite the weakness in overnight trading in New York, after Advantest Corp. reported better-than-expected results in its latest quarter.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.7% to 61,867.43, and the broader TOPIX fell 0.5% to 3,952.50.
Advantest Corp. soared 11% to ¥27,935.0 after the chip-testing equipment maker lifted its annual operating profit outlook by 35%, supported by strong demand driven by artificial intelligence infrastructure.
The market rally spread to other AI-related stocks after Advantest released its results.
Tokyo Electron increased 4.4% to ¥52,240.0, Murata Manufacturing advanced 2.9% to ¥6,416.0, and Ibiden Corp. gained 1.4% to ¥13,650.0.
SoftBank Group fell 2.5% to ¥4,622.0 after its subsidiary Arm Holdings PLC plunged 6.6% to $209.93 on weaker-than-expected sales estimates.
- Li Chen
- 30 Jul, 2026
- Hong Kong
China's indexes lacked direction ahead of the politburo meeting this week, and investors held out for possible policy support amid a weakening economic growth backdrop.
The Hang Seng Index decreased 0.2%, and the mainland-focused CSI 300 Index dropped more than 2% amid a deepening correction in artificial intelligence-related stocks.
Brent crude oil prices decreased by 0.9% to $89.99 a barrel amid heightened tensions in the Middle East. Energy shipments through the Strait of Hormuz were disrupted for the third week as Iran and the U.S. continued to exchange military strikes.
China Indexes and Stocks
The Hang Seng Index decreased 0.2% to 25,737.50, and the mainland-focused CSI 300 Index declined 2.2% to 4,500.16.
Tech and AI-related stocks led decliners in Hong Kong and on the mainland exchanges amid persistent worries over the sustainability of the artificial intelligence infrastructure spending.
Cambricon Technologies dropped 11% to ¥1,030.0, Eoptolink Technologies decreased 13% to ¥364.58, and Zhongji Innolight fell 11.4% to ¥843.69.
Zhongji Innolight completed its initial public offering in Hong Kong and raised HK $53.4 billion, or $6.8 billion, pricing its IPO at HK $980 each.
The optical transceiver maker's stock faced strong headwinds amid a global downturn in investor sentiment towards the artificial intelligence sector.
- Li Chen
- 30 Jul, 2026
- Hong Kong
China's indexes lacked direction ahead of the politburo meeting this week, and investors held out for possible policy support amid a weakening economic growth backdrop.
The Hang Seng Index decreased 0.2%, and the mainland-focused CSI 300 Index dropped more than 2% amid a deepening correction in artificial intelligence-related stocks.
Brent crude oil prices decreased by 0.9% to $89.99 a barrel amid heightened tensions in the Middle East. Energy shipments through the Strait of Hormuz were disrupted for the third week as Iran and the U.S. continued to exchange military strikes.
China Indexes and Stocks
The Hang Seng Index decreased 0.2% to 25,737.50, and the mainland-focused CSI 300 Index declined 2.2% to 4,500.16.
Tech and AI-related stocks led decliners in Hong Kong and on the mainland exchanges amid persistent worries over the sustainability of the artificial intelligence infrastructure spending.
Cambricon Technologies dropped 11% to ¥1,030.0, Eoptolink Technologies decreased 13% to ¥364.58, and Zhongji Innolight fell 11.4% to ¥843.69.
Zhongji Innolight completed its initial public offering in Hong Kong and raised HK $53.4 billion, or $6.8 billion, pricing its IPO at HK $980 each.
The optical transceiver maker's stock faced strong headwinds amid a global downturn in investor sentiment towards the artificial intelligence sector.
- Barry Adams
- 29 Jul, 2026
- New York City
U.S. stocks wavered ahead of the Federal Reserve's rate decisions later in the session, and crude oil prices rebounded after tensions in the Middle East flared up.
The S&P 500 Index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% as investors reviewed the latest batch of earnings.
West Texas crude oil prices rose 5% to $83.22 a barrel after the U.S. Central Command said in a social media post it had successfully intercepted missile attacks launched by Iran.
The U.S. and Iran exchanged military strikes for thirteen consecutive days, disrupting energy shipments through the Strait of Hormuz and preventing crude oil and natural gas reaching global markets.
Crude oil prices have surged more than 20% over the last three weeks, driven by renewed uncertainty of supplies from the Gulf nations.
U.S. Movers
Ford Motor Company rose 7% to $15.99 after the vehicle maker reported better-than-expected second quarter results.
Visa Inc. decreased 2.4% to $358.0 after the payment processor reported its fiscal third quarter ending in June.
Revenue increased 14% to $11.6 billion from $10.2 billion, net income advanced 7% to $5.6 billion from $5.3 billion, and diluted earnings per share rose 10% to $2.97 from $2.69 a year ago.
Total revenue growth was driven by an 11% increase in payments and 9% growth in processed transactions, led by expansion in digital commerce.
The company said it returned $6.2 billion to shareholders, including $4.9 billion in stock repurchases and $1.3 billion in dividends, and as of the end of June, about $28.4 billion was available under stock repurchase authorization.
The U.S. payment volume increased 10%, driven by an 11% rise in credit volume, a 9% increase in debit charges, and international payments advanced 10% from a year ago, respectively.
The FIFA World Cup also supported a surge in cross-border payment processing, and inbound processing rose 25% in the U.S. host cities, 70% in Mexico, and 35% in Canada.
Visa estimated fourth-quarter adjusted net revenue growth at the high end of the "low-double-digit percentage range," full-year 2026 net revenue growth at the low end of the low-teens percentage range, and adjusted earnings per share growth at the low end of the mid-teens percentage range.
- Barry Adams
- 29 Jul, 2026
- New York City
U.S. stocks wavered ahead of the Federal Reserve's rate decisions later in the session, and crude oil prices rebounded after tensions in the Middle East flared up.
The S&P 500 Index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% as investors reviewed the latest batch of earnings.
West Texas crude oil prices rose 5% to $83.22 a barrel after the U.S. Central Command said in a social media post it had successfully intercepted missile attacks launched by Iran.
The U.S. and Iran exchanged military strikes for thirteen consecutive days, disrupting energy shipments through the Strait of Hormuz and preventing crude oil and natural gas reaching global markets.
Crude oil prices have surged more than 20% over the last three weeks, driven by renewed uncertainty of supplies from the Gulf nations.
U.S. Movers
Ford Motor Company rose 7% to $15.99 after the vehicle maker reported better-than-expected second quarter results.
Visa Inc. decreased 2.4% to $358.0 after the payment processor reported its fiscal third quarter ending in June.
Revenue increased 14% to $11.6 billion from $10.2 billion, net income advanced 7% to $5.6 billion from $5.3 billion, and diluted earnings per share rose 10% to $2.97 from $2.69 a year ago.
Total revenue growth was driven by an 11% increase in payments and 9% growth in processed transactions, led by expansion in digital commerce.
The company said it returned $6.2 billion to shareholders, including $4.9 billion in stock repurchases and $1.3 billion in dividends, and as of the end of June, about $28.4 billion was available under stock repurchase authorization.
The U.S. payment volume increased 10%, driven by an 11% rise in credit volume, a 9% increase in debit charges, and international payments advanced 10% from a year ago, respectively.
The FIFA World Cup also supported a surge in cross-border payment processing, and inbound processing rose 25% in the U.S. host cities, 70% in Mexico, and 35% in Canada.
Visa estimated fourth-quarter adjusted net revenue growth at the high end of the "low-double-digit percentage range," full-year 2026 net revenue growth at the low end of the low-teens percentage range, and adjusted earnings per share growth at the low end of the mid-teens percentage range.
- Akira Ito
- 29 Jul, 2026
- Tokyo
Japan's indexes extended the previous session's losses as technology stocks remained under heavy pressure amid the sustainability of the artificial intelligence trade.
The Nikkei 225 Index fell as much as 2%, while the broader TOPIX edged up a fraction, and the Japanese yen weakened to 163.45 against the U.S. dollar.
Market sentiment remained fragile in Tokyo and Asia, as global semiconductor stocks deepened losses for the third consecutive week.
Moreover, tensions in the Middle East flared after Iran resumed bombing U.S. installations following the sustained Israeli strikes in Lebanon.
Despite the repeated claims by the U.S. president, the war between the U.S. and Iran is showing no signs of ending, and the conflict between Ukraine and Russia expanded to the Caspian Sea.
Crude oil and natural gas prices are likely to rise further as the two separate conflicts involving the U.S. and Iran and the West and Russia increasingly overlap.
The Brent crude oil prices rose 3.5% to $87.46 a barrel, extending a two-week gain to over 24%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 2% to 61,112.46, and the broader TOPIX edged up 0.02% to 3,964.26.
Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ declined between 2% and 3%.
Murata Manufacturing plunged 12.8% to ¥6,231.0, Kioxia Holdings decreased 13.9% to ¥38,380.0, and Tokyo Electron dropped 11% to ¥50,000.0.
- Akira Ito
- 29 Jul, 2026
- Tokyo
Japan's indexes extended the previous session's losses as technology stocks remained under heavy pressure amid the sustainability of the artificial intelligence trade.
The Nikkei 225 Index fell as much as 2%, while the broader TOPIX edged up a fraction, and the Japanese yen weakened to 163.45 against the U.S. dollar.
Market sentiment remained fragile in Tokyo and Asia, as global semiconductor stocks deepened losses for the third consecutive week.
Moreover, tensions in the Middle East flared after Iran resumed bombing U.S. installations following the sustained Israeli strikes in Lebanon.
Despite the repeated claims by the U.S. president, the war between the U.S. and Iran is showing no signs of ending, and the conflict between Ukraine and Russia expanded to the Caspian Sea.
Crude oil and natural gas prices are likely to rise further as the two separate conflicts involving the U.S. and Iran and the West and Russia increasingly overlap.
The Brent crude oil prices rose 3.5% to $87.46 a barrel, extending a two-week gain to over 24%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 2% to 61,112.46, and the broader TOPIX edged up 0.02% to 3,964.26.
Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ declined between 2% and 3%.
Murata Manufacturing plunged 12.8% to ¥6,231.0, Kioxia Holdings decreased 13.9% to ¥38,380.0, and Tokyo Electron dropped 11% to ¥50,000.0.
- Li Chen
- 29 Jul, 2026
- Hong Kong
Stocks in China struggled to advance amid renewed tensions in the Middle East and lingering AI trade worries.
The Hang Seng Index increased 1.5%, and the mainland-focused CSI 300 Index eased 0.2% as investors weighed rising crude oil prices against stretched valuations of tech stocks.
Tensions in the Middle East flared after Iran resumed its bombing of U.S. positions there, and Israel continued its strikes deep into Lebanon.
The Brent crude oil price rebounded 3.5% to $87.32 a barrel after the U.S. Central Command claimed that it struck down all projectiles from Iran.
AI- and semiconductor-related stocks rebounded in early trading; however, market sentiment was cautious amid a worry of circular AI finance arrangements.
Advanced computer chipmakers are reporting a sharp rise in earnings and profits, but those gains come with a financing arrangement with customers to purchase expensive chips.
The People's Bank of China injected 806.5 billion yuan into the banking system through reverse repo operations to maintain sufficient liquidity as the month's end approached.
China Indexes and Stocks
The Hang Seng Index increased 1.5% to 25,688.17, and the mainland-focused CSI 300 Index eased 0.2% to 4,558.36.
Banks led decliners in Shanghai trading, driven by growing worries of further economic slowdown.
ICBC declined 1.4%, Agricultural Bank of China fell 1.3%, and Bank of China eased 1.2%.
HSBC Holdings decreased 0.7% to HK $160.90, and China Construction Bank closed unchanged at HK $9.13.
- Li Chen
- 29 Jul, 2026
- Hong Kong
Stocks in China struggled to advance amid renewed tensions in the Middle East and lingering AI trade worries.
The Hang Seng Index increased 1.5%, and the mainland-focused CSI 300 Index eased 0.2% as investors weighed rising crude oil prices against stretched valuations of tech stocks.
Tensions in the Middle East flared after Iran resumed its bombing of U.S. positions there, and Israel continued its strikes deep into Lebanon.
The Brent crude oil price rebounded 3.5% to $87.32 a barrel after the U.S. Central Command claimed that it struck down all projectiles from Iran.
AI- and semiconductor-related stocks rebounded in early trading; however, market sentiment was cautious amid a worry of circular AI finance arrangements.
Advanced computer chipmakers are reporting a sharp rise in earnings and profits, but those gains come with a financing arrangement with customers to purchase expensive chips.
The People's Bank of China injected 806.5 billion yuan into the banking system through reverse repo operations to maintain sufficient liquidity as the month's end approached.
China Indexes and Stocks
The Hang Seng Index increased 1.5% to 25,688.17, and the mainland-focused CSI 300 Index eased 0.2% to 4,558.36.
Banks led decliners in Shanghai trading, driven by growing worries of further economic slowdown.
ICBC declined 1.4%, Agricultural Bank of China fell 1.3%, and Bank of China eased 1.2%.
HSBC Holdings decreased 0.7% to HK $160.90, and China Construction Bank closed unchanged at HK $9.13.
- Barry Adams
- 28 Jul, 2026
- New York City
U.S. stocks traded down on Wednesday, and investors awaited the release of quarterly results from key mega-cap companies this week.
The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite fell 0.7% ahead of the Federal Reserve's rate decisions on Wednesday.
Semiconductor stocks traded down in the previous session amid lingering worry over the sustainability of AI infrastructure spending by hyperscalers.
The weakness in the U.S.-based chipmakers spilled over into Asian markets, and benchmark indexes in Japan fell 4%, in China decreased 2.2%, and in South Korea plunged 9%.
The Federal Open Market Committee is widely anticipated to leave the reference rate unrevised between 3.50% and 3.75% at the end of a two-day policy meeting on Wednesday, and investors will seek greater clarity on the rate path for the rest of the year.
Investors are still anticipating at least one 25 basis point rate cut before the year's end; however, the resurgent energy prices are clouding the rate outlook.
The West Texas Intermediate crude oil price dropped 2% to $80.98 a barrel, after tumbling nearly 10% yesterday, amid hopes that tensions between the U.S. and Iran could cool further.
On the earnings front, Coca-Cola, UPS, Boeing, and Corning are scheduled to release their quarterly results before the market opening.
Coca-Cola reported better-than-expected results for the second quarter, and the beverage company hiked its annual outlook.
UPS advanced 2% after the parcel delivery company reported higher revenue and lifted its full-year outlook.
U.S. Movers
Rambus edged up 0.1% to $96.52 after the semiconductor company reported second-quarter results.
Revenue increased 20% to $207.4 million from $172.2 million, net income advanced 17% to $67.6 million from $57.9 million, and diluted earnings per share rose to 61 cents from 53 cents a year ago.
Product revenue increased to $99.2 million from $81.3 million, royalties revenue advanced to $84.2 million from $68.6 million, and contract and other revenue rose to $24.0 million from $22.3 million a year ago, respectively.
The company also had licensing billings of $84.1 million, which is an operational metric that reflects amounts invoiced to its licensing customers during the quarter.
The company estimated third quarter revenue to range between $210 million and $216 million, GAAP diluted earnings per share between 59 cents and 67 cents, and non-GAAP diluted earnings per share between 75 cents and 82 cents.
Cadence Design Systems rose 2.5% to $347.00 after the electronics design software reported second-quarter results.
Revenue increased to $1.6 billion from $1.3 billion, net income soared to $367.1 million from $160.1 million, and diluted earnings per share advanced to $1.33 from 59 cents a year ago.
System design and analysis revenue increased 37%, driven by demand for PCB and advanced packaging solutions, and intellectual property revenue soared 40% from a year ago, respectively.
The company estimated 2026 revenue to range between $6.26 billion and $6.34 billion, GAAP diluted earnings per share to range between $4.76 and $4.86, and non-GAAP diluted earnings per share in the range of $8.05 to $8.15.
- Barry Adams
- 28 Jul, 2026
- New York City
U.S. stocks traded down on Wednesday, and investors awaited the release of quarterly results from key mega-cap companies this week.
The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite fell 0.7% ahead of the Federal Reserve's rate decisions on Wednesday.
Semiconductor stocks traded down in the previous session amid lingering worry over the sustainability of AI infrastructure spending by hyperscalers.
The weakness in the U.S.-based chipmakers spilled over into Asian markets, and benchmark indexes in Japan fell 4%, in China decreased 2.2%, and in South Korea plunged 9%.
The Federal Open Market Committee is widely anticipated to leave the reference rate unrevised between 3.50% and 3.75% at the end of a two-day policy meeting on Wednesday, and investors will seek greater clarity on the rate path for the rest of the year.
Investors are still anticipating at least one 25 basis point rate cut before the year's end; however, the resurgent energy prices are clouding the rate outlook.
The West Texas Intermediate crude oil price dropped 2% to $80.98 a barrel, after tumbling nearly 10% yesterday, amid hopes that tensions between the U.S. and Iran could cool further.
On the earnings front, Coca-Cola, UPS, Boeing, and Corning are scheduled to release their quarterly results before the market opening.
Coca-Cola reported better-than-expected results for the second quarter, and the beverage company hiked its annual outlook.
UPS advanced 2% after the parcel delivery company reported higher revenue and lifted its full-year outlook.
U.S. Movers
Rambus edged up 0.1% to $96.52 after the semiconductor company reported second-quarter results.
Revenue increased 20% to $207.4 million from $172.2 million, net income advanced 17% to $67.6 million from $57.9 million, and diluted earnings per share rose to 61 cents from 53 cents a year ago.
Product revenue increased to $99.2 million from $81.3 million, royalties revenue advanced to $84.2 million from $68.6 million, and contract and other revenue rose to $24.0 million from $22.3 million a year ago, respectively.
The company also had licensing billings of $84.1 million, which is an operational metric that reflects amounts invoiced to its licensing customers during the quarter.
The company estimated third quarter revenue to range between $210 million and $216 million, GAAP diluted earnings per share between 59 cents and 67 cents, and non-GAAP diluted earnings per share between 75 cents and 82 cents.
Cadence Design Systems rose 2.5% to $347.00 after the electronics design software reported second-quarter results.
Revenue increased to $1.6 billion from $1.3 billion, net income soared to $367.1 million from $160.1 million, and diluted earnings per share advanced to $1.33 from 59 cents a year ago.
System design and analysis revenue increased 37%, driven by demand for PCB and advanced packaging solutions, and intellectual property revenue soared 40% from a year ago, respectively.
The company estimated 2026 revenue to range between $6.26 billion and $6.34 billion, GAAP diluted earnings per share to range between $4.76 and $4.86, and non-GAAP diluted earnings per share in the range of $8.05 to $8.15.