Nasdaq 100: Alphabet’s Surge Offsets Tesla Slide, While IBM Pulls Dow Jones Lower

Nasdaq Eyes Another Record as Alphabet Powers Tech Rally

Nasdaq 100 futures climbed 0.2% Thursday morning, positioning the index for another record close after Alphabet delivered a decisive earnings beat. The Google parent company’s shares surged 4% in premarket trading following second-quarter results that crushed Wall Street expectations across all key metrics.

S&P 500 futures held steady near the flatline, while Dow futures dropped 300 points or 0.7%, weighed down by IBM’s 6% decline after software revenue disappointed analysts.

Will Alphabet’s AI Revenue Drive Continued Tech Outperformance?

Alphabet reported earnings of $2.31 per share on revenue of $96.43 billion, handily beating consensus estimates of $2.18 per share and $94 billion respectively. The strong performance reinforces the tech giant’s position in the artificial intelligence race and supports the broader technology sector’s premium valuations.

ServiceNow added fuel to the tech rally, jumping 8% after raising full-year subscription revenue guidance following its own quarterly beat. The enterprise software company’s guidance hike signals continued strength in business technology spending.

Tesla and IBM Drag Down Mega-Cap Momentum

Electric vehicle leader Tesla fell 6% after missing expectations on both earnings and revenue lines. The company posted adjusted earnings of 40 cents per share on $22.5 billion in revenue, falling short of the 43 cents and $22.74 billion consensus estimates. Auto revenue declined for the second consecutive quarter, raising concerns about demand in core markets.

IBM’s 6% premarket decline came despite stronger-than-expected overall results and raised free cash flow guidance. The drop appears driven by profit-taking after the stock’s 28% year-to-date rally and disappointing software business margins.

Federal Reserve Meeting Adds Political Uncertainty to Market Mix

President Trump’s scheduled visit to the Federal Reserve Thursday marks the first official presidential trip to the central bank in nearly two decades. The unprecedented meeting escalates Trump’s public pressure campaign against Chairman Jerome Powell, potentially introducing new political risk factors for monetary policy expectations.

Initial jobless claims provided a supportive backdrop, falling to 217,000 for the week ending July 19, well below the 227,000 consensus forecast. The labor market data reinforces expectations for continued economic resilience.

Market Outlook: Trade Progress Supports Risk-On Sentiment

Equity markets built on Wednesday’s strong performance, when the S&P 500 notched its 12th record close of the year with a 0.78% gain. Progress on trade negotiations continues to underpin bullish sentiment, with Trump announcing a “massive Deal” with Japan featuring 15% reciprocal tariffs.

Similar progress toward a European Union trade agreement, as reported by the Financial Times and Bloomberg, suggests the administration’s negotiating approach may be gaining traction. These developments should maintain positive momentum for risk assets, particularly if earnings season continues delivering upside surprises like Alphabet’s impressive results.

More Information in our Initial jobless claims.