Morning in New York: A Breather Before Key Events

A daily review and forecast of events in the U.S. stock market by Mikhail Denislamov, Deputy Director of Capital Markets Research at Freedom Broker.

Risk appetite is recovering amid signs of de-escalation in the Middle East conflict. The U.S. has suspended strikes against Iran, which the market interpreted as a reduction in the likelihood of further escalation. Although the risk of renewed mutual attacks remains, even a temporary easing of tensions is alleviating concerns about disruptions to oil supplies through the Strait of Hormuz and helping to improve sentiment on global stock markets. Against this backdrop, oil prices have fallen significantly.

Today’s macroeconomic data is likely to have only a limited impact on trading activity. Investors are focused on the two-day Fed meeting starting tomorrow, as well as on the release of inflation and labor market data later this week. This Monday will see the release of preliminary estimates for durable goods orders and capital goods orders (excluding aircraft and defense products) for June, as well as the Dallas Fed’s July manufacturing business activity index.

Before the start of the main trading session, AstraZeneca (AZN) will report its quarterly results. After the market closes, Cadence Design Systems (CDNS), Welltower (WELL), Applied Digital (APLD), Celestica (CLS), Rambus (RMBS), Amkor Technology (AMKR), Noble Corporation (NE), and Nucor (NUE) will report their results.

Futures on U.S. stock indices are showing positive momentum. We assess the risk outlook for the upcoming session as positive, with moderate volatility.

— Forte Biosciences (FBRX) shares soared nearly 39% following the announcement that the Dutch-Belgian biotech company Argenx SE would acquire the company for approximately $2.2 billion, or $77 per share. The deal will give the buyer a first-in-class monoclonal antibody-based drug designed to treat skin and autoimmune diseases. This product has already shown promising results in early-stage trials for the treatment of vitiligo and celiac disease.

— SK Hynix (SKHY) shares are up about 6% following an announcement by NVIDIA (NVDA) and South Korea’s SK Group regarding the launch of an AI project worth about $500 billion, which involves the construction of large data centers and the development of next-generation memory chips. This provides further grounds to expect continued strong demand for HBM memory, for which SK Hynix is a key supplier.

— Silvaco Group (SVCO) shares are up about 5.7% following the announcement of a partnership with NVIDIA (NVDA). The companies are integrating CUDA-X technologies and GPU-accelerated computing into Silvaco’s semiconductor simulation software solutions, which will significantly reduce the time required to develop new chips.

— According to The Wall Street Journal, NVIDIA (NVDA) is in talks to provide approximately $250 billion in guarantees to OpenAI as part of a project to build a 10-GW data center in Ohio. The guarantees will help OpenAI lease infrastructure being developed by SoftBank’s energy division. Against the backdrop of this positive news, NVDA shares are up 1.3%.

Trading on July 24 on U.S. stock markets ended with mixed results. The S&P 500 rose by a symbolic 0.05%, the Dow Jones rose by 0.46%, while the NASDAQ 100 fell by 1.15% and the Russell 2000 lost 0.35%. Despite weak performance by tech companies, the market showed signs of broad-based growth: the equally weighted S&P 500 significantly outperformed the “classic” index. This suggests a shift of capital from tech sector leaders to stocks in other sectors.

The real estate sector (XLRE: +2.22%) emerged as the top performer. Telecommunications, airlines, regional banks, the defense sector, and construction companies also posted strong gains. The technology sector (XLK: -1.44%) lagged behind amid renewed profit-taking in semiconductor stocks, including memory chip manufacturers. Among the “Magnificent Seven,” Apple (AAPL: +3.53% at the close of trading on July 24) outperformed the rest, while Tesla (TSLA: -2.08%) continued to decline.

The geopolitical landscape remained mixed. Reports of a possible tightening of U.S. policy toward Iran were offset by news of diplomatic initiatives aimed at reducing tensions. Against this backdrop, the price of WTI crude oil fell by 3.1%. Investors also paid close attention to Donald Trump’s latest statements regarding the possibility of imposing tariffs on the EU in response to fines levied against U.S. technology companies.

Macroeconomic data was mixed. The preliminary manufacturing business activity index for July fell slightly short of market expectations, while the services sector index, on the other hand, exceeded the consensus forecast. New home sales in June totaled 628,000, compared with a forecast of 610,000.

— Schlumberger (SLB: +11% at the close of trading on July 24) reported quarterly results that exceeded market consensus estimates for revenue, EBITDA, earnings per share, and free cash flow. Management noted a resumption of business growth outside the Middle East, driven by a recovery in offshore activity, increased demand in North America, and the expansion of its digital segment.

— Booz Allen Hamilton’s (BAH: +10.1%) quarterly results did not meet the market’s pessimistic expectations. Despite a year-over-year decline in revenue, earnings per share and profit margins exceeded consensus estimates. In addition, the company reaffirmed its guidance for fiscal year 2027. Investors reacted positively to the increase in demand from clients in the national security sector.

— Verizon Communications (VZ: +5.8%) beat analysts’ estimates for earnings and EBITDA, although its revenue came in slightly below the consensus. The telecom operator’s management raised its earnings guidance for 2026 and reported continued steady growth in its subscriber base.

— American Express (AXP: -4.3%) reported earnings above average expectations for the quarter and raised its revenue growth forecast. However, investors were disappointed that the company maintained its previous earnings-per-share guidance, as it plans to allocate the additional revenue to marketing, loyalty programs, and further business development.

— The Financial Times has learned of a possible end to the partnership between Uber Technologies (UBER: -4.3%) and Waymo, a developer of autonomous driving technology. The Alphabet (GOOGL)-owned company is considering developing its own robotaxi service in certain markets, which could limit the prospects for further partnership.

This article was AI-translated and verified by a human editor