Wall Street held relatively steady Thursday as U.S. equity futures ticked higher, buoyed by surprisingly strong Q2 GDP growth of 3 percent. Yet optimism was tempered by lackluster results from mega-cap companies and caution ahead of the Federal Reserve's policy announcement. The S&P 500 rose 0.11 percent and the Nasdaq gained 0.22 percent in early trade following reports from Humana, Visa, and others. Investors are now navigating a tightrope between bullish growth data and uncertain earnings guidance.
Earnings from Humana lifted the stock nearly 5.7 percent after the insurer raised its annual profit forecast, signaling strength in healthcare demand. Meanwhile, Visa shares dipped despite solid earnings because guidance remained flat. Starbucks declined more than 2.9 percent, weighed down by weaker profitability despite better-than-expected quarterly revenue. Across the board, investors are focusing on forward commentary rather than top-line beats.
In the tech sector, anticipation is building for earnings from Microsoft and Meta after the market close, followed by Amazon and Apple on Thursday. Analysts note that despite recent trade developments providing clarity, it is Big Tech profitability and guidance that could drive sentiment more than macro headlines.
Economic indicators are also in focus. Consumer inflation remains elevated—June CPI rose 2.7 percent year-over-year, slightly above the Fed’s target, keeping pressure on wage growth and policy expectations. Interest rates are expected to remain unchanged at 4.25–4.50 percent, with only subtle shifts in tone signaling future cuts.
One standout market signal: Wells Fargo revised its year-end S&P 500 target higher to 6,300–6,500, up from the prior range of 5,900–6,100. The firm cited sustained Q2 GDP growth, delayed tariffs, and improved earnings as justification. Other wall streets firms have raised similar forecasts, tempering worries about a market correction.
What Comes Next?
The next 48 hours will likely define whether markets can sustain this broader rally or face a quick retrenchment. Investors are watching closely for Fed Chair Jerome Powell’s language around inflation and tariffs. Solid earnings from tech giants could reinforce risk appetite, while any weakness in guidance may pull indices lower. The combination of fresh trade clarity, a strong macro backdrop, and cautious corporate outlooks sets the stage for market-moving commentary.
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