Market Recap & What’s Ahead: Big Tech Lifts Wall Street While Fed Holds, Trump Drops Tariff Hammer
Wall Street closed mixed on Thursday as traders digested a slew of events: a hawkish Fed pause, a surprisingly strong Q2 GDP print, and major earnings from Big Tech. Though markets initially wobbled after Powell’s press conference, strength in Microsoft and Meta’s post-earnings reactions helped buoy sentiment into the after-hours.
Meta & Microsoft Lead Magnificent Seven Breakout
The first wave of “Magnificent Seven” earnings hit the tape Wednesday — and didn’t disappoint.
Meta Platforms (META) soared premarket after reporting blowout results fueled by a rebound in its advertising business and optimism around AI monetization. Microsoft (MSFT) also smashed expectations, with AI-driven cloud growth fueling top- and bottom-line strength.
Tech bulls celebrated — $QQQ surged to a new all-time high of 576 in extended-hours trading.
Apple (AAPL) and Amazon (AMZN) are set to report after the bell today, with Mastercard (MA), CVS, Cigna (CI), and Bristol-Myers Squibb (BMY) releasing earnings before the open. If these reports keep the streak alive, we could see $QQQ pushing toward 600+ in the coming weeks.
Trump Unleashes New Tariff Wave
President Trump escalated his trade agenda late Wednesday with fresh tariffs:
- 15% on South Korea, despite the country agreeing to invest $350B in the U.S. and purchase $100B in energy products.
- 25% + penalties on India, citing defense and energy ties with Russia.
- 50% tariff on copper-intensive and semi-finished products, effective August 1, citing national security.
Several global trade deals remain unresolved, and Trump’s “reciprocal” tariff plan is set to activate fully on August 1. These moves are likely to create ripple effects in commodities, equities, and inflation data as the month rolls on.
Fed Holds, but Dissent Grows
The Fed held interest rates steady at 4.25%–4.5% on Wednesday, but there was a historic double dissent — the first since 1993 — from Trump-appointed governors Bowman and Waller, both of whom voted for a 25 bps rate cut.
Powell downplayed the urgency of cuts despite market and political pressure. His suggestion that the Fed would “look through” tariff-induced inflation (i.e., not hike rates in response) clearly put him back in the President’s crosshairs.
Meanwhile, Q2 GDP surprised to the upside, driven largely by a drop in imports, and private payrolls rose by 104K in July — both reinforcing that the Fed may stay on hold longer than markets hope.
Crude Pulls Back Amid China Weakness
Oil prices cooled:
- Brent fell to $71.83, WTI dipped to $69.44.
- The drop followed a 7.7M barrel crude inventory build (vs. expected 1.3M draw) and ongoing weak Chinese economic data.
However, Trump’s tariff threats against Russian oil buyers could tighten supply further, keeping energy names on watch.
Thursday’s Market Pulse:
Wednesday saw intraday volatility — $QQQ dropped from 570.62 to 565.05 on Powell’s comments, then rebounded to close at 568.02. In after-hours, Big Tech earnings pushed the index to new highs.
Today’s sentiment drivers: earnings from $AAPL, $AMZN, $MA, $NET, and key economic data.
Economic Data – Thursday, July 31:
🟢 Core PCE Price Index (June)
🟢 Personal Spending & Income
🟢 Initial & Continuing Jobless Claims
🟢 Employment Cost Index (Q2)
🟢 Chicago PMI (July)
🟢 Atlanta Fed GDPNow (Q3 estimate)
🟢 Fed Balance Sheet
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