Category: Market Summary

U.S. stock futures traded firmly higher ahead of Thursday’s opening bell, indicating Wall Street could recover some of the heavy losses suffered during the previous session.

Technology shares looked set to lead the advance, with Nasdaq 100 futures gaining 1.6% in premarket trading.

Microsoft Surges While Meta Weighs on Sentiment

Investors appeared willing to buy back into beaten-down technology stocks after Wednesday’s steep sell-off sent the Nasdaq to its lowest closing level in three months. The Dow Jones Industrial Average and the S&P 500 also closed at their weakest levels in more than a month.

Microsoft (NASDAQ:MSFT) jumped 9.2% before the opening after reporting quarterly earnings that topped expectations, supported by continued momentum in its Azure cloud computing business.

Meanwhile, Meta Platforms (NASDAQ:META) slid 9.7% in premarket trading after issuing revenue growth guidance that disappointed investors.

“This reporting season has become less about headline results and more about proving that unprecedented AI spending can generate sustainable profitability,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

She added, “With Apple and Amazon still to report, the market’s verdict on the AI investment cycle remains far from settled.”

Markets Reverse Late After Afternoon Recovery

Stocks experienced sharp swings throughout Wednesday’s session. After erasing early losses and briefly trading in positive territory during the afternoon, the major indices turned lower again in the final hour.

The Dow Jones Industrial Average fell 1,153.18 points, or 2.2%, to finish at 51,594.14.

The Nasdaq Composite lost 433.97 points, or 1.7%, closing at 24,442.94, its weakest finish in three months.

The S&P 500 dropped 112.63 points, or 1.5%, ending at 7,316.15, marking its lowest close in well over a month.

Federal Reserve Decision Fails to Calm Investors

Selling pressure intensified after Treasury yields climbed despite the Federal Reserve’s decision to leave interest rates unchanged.

The central bank maintained the federal funds target range at 3.5% to 3.75%, marking the fifth straight meeting without a rate change.

However, the decision divided policymakers, with Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan all favouring a quarter-point rate increase.

Rising Oil Prices Add to Market Volatility

Markets also contended with a sharp rebound in crude oil prices.

U.S. crude futures rose more than 6% after losing 14% over the previous three sessions as concerns resurfaced over escalating tensions between the United States and Iran.

According to U.S. Central Command, Iran launched multiple ballistic missiles at U.S. forces in the Middle East on Tuesday, although the projectiles were intercepted.

Centcom later confirmed that U.S. and Saudi Arabian forces carried out precision strikes against Iran-backed militant targets in Iraq following more than 30 drone attacks over the previous 72 hours.

President Donald Trump also warned of a strong U.S. response, telling a Fox News reporter: “They’re going to get a beating.”

Chipmakers Among the Hardest Hit

Semiconductor shares were among the weakest performers, with the Philadelphia Semiconductor Index tumbling 5.3% to its lowest closing level in three months.

Housing stocks also fell sharply as higher Treasury yields pressured the sector, sending the Philadelphia Housing Sector Index down 4.3%.

Networking, computer hardware, airline and banking stocks also posted notable losses, while energy companies outperformed as higher crude oil prices lifted the sector.

European equity markets traded higher on Thursday as investors assessed another wave of corporate earnings while weighing the implications of the U.S. Federal Reserve’s decision to leave interest rates unchanged following a closely divided 9-3 vote.

Bank of England Holds Rates Steady

In the latest monetary policy decision, the Bank of England kept its benchmark interest rate unchanged, in line with market expectations.

The Monetary Policy Committee, chaired by Governor Andrew Bailey, voted 6-3 to maintain the bank rate at 3.75%, its lowest level since June 2023.

French Economy Returns to Growth

Fresh economic data showed that France avoided slipping into recession during the second quarter as stronger consumer spending and exports supported economic activity.

Preliminary figures from INSEE showed gross domestic product expanded by 0.2% compared with the previous quarter, reversing the 0.1% contraction recorded in the first quarter and matching economists’ forecasts.

Separate data also indicated that French household spending accelerated in June, helped by increased expenditure on food and energy.

Major European Indices Trade Higher

The French CAC 40 gained 0.9%, while the UK’s FTSE 100 advanced 0.4%. Germany’s DAX also moved higher, rising 0.1%.

Rolls-Royce Leads UK Market Higher

Among individual stocks, Rolls Royce Holdings (LSE:RR.) climbed more than 4% after the engineering group upgraded its full-year profit outlook following a strong first-half operating and financial performance.

Shell (LSE:SHEL) added around 1% after reporting that second-quarter profit more than doubled.

BAE Systems (LSE:BA.) rose 1.1% after lifting its full-year guidance for sales, profitability and cash flow following a strong first half.

Lloyds Banking Group (LSE:LLOY) gained nearly 2% after unveiling further cost-cutting measures, increasing its interim dividend and announcing a new £1 billion share buyback following a 23% rise in first-half profit.

European Companies Deliver Mixed Results

Dutch banking group ING (EU:INGA) advanced 2% after posting better-than-expected second-quarter earnings and improving its outlook.

Stellantis (BIT:STLAM) fell 5.3% after adjusted operating income for the second quarter missed market expectations.

French infrastructure company Vinci (EU:DG) jumped nearly 5% after exceeding forecasts for first-half profit and free cash flow, supported by strong momentum in its Energy Solutions division.

Veolia (EU:VIE), a global environmental services provider, gained 1.7% after reporting solid first-half earnings and raising its full-year profit guidance.

Capgemini (EU:CAP) declined 1.7% after announcing a sharp drop in first-half net profit.

Air France-KLM (EU:AF) rose 1.5%, while Deutsche Lufthansa edged higher after both airlines submitted offers to acquire a controlling interest in TAP Air Portugal.

Hotel operator Accor (EU:AC) slipped 1.3% after reporting a slight decline in second-quarter revenue per available room.

Bouygues (EU:EN) surged 7% after publishing improved first-half financial results.

Schneider Electric (EU:SU) rallied 6.4% after delivering record first-half revenue and free cash flow.

Sanofi (EU:SAN) fell 3.6% despite raising its full-year sales guidance.

Societe Generale (EU:GLE) climbed 2.4% after announcing plans to begin a €1.5 billion share buyback programme as early as August 3.

Adidas Slides While BMW Gains

Adidas (TG:ADS) plunged more than 17% after higher marketing spending related to the football World Cup weighed on quarterly profit.

Meanwhile, BMW (TG:BMW) gained 1.7% after reporting a second-quarter automotive profit margin that came in slightly ahead of expectations.

FTSE 100 steady at the open as Lloyds beats profit forecasts with a new 2030 plan and LSEG shares slip despite raised guidance, amid US-Iran tensions.

Market Overview

European and US equity markets opened on a cautious footing on Thursday, with the FTSE 100 easing marginally to 10,907.37, down 0.01 per cent, and the Euronext 100 slipping to 1,899.63, also down 0.01 per cent, both broadly flat after Wednesday’s session. Germany’s DAX was down 0.19 per cent at 25,411.24 shortly after the Frankfurt open. Wall Street set a weaker overnight tone, with the Nasdaq Composite closing down 1.74 per cent at 24,442.94 and the S&P 500 down 1.52 per cent at 7,316.15, as investors weighed the escalating conflict between the United States and Iran following fresh US strikes, and awaited the Bank of England’s latest interest rate decision.

Among commodities, copper and natural gas edged higher while gold and Brent Crude eased back, even as Middle East tensions continue to underpin energy prices. Bitcoin was firmer against sterling. Sterling itself was broadly steady, edging higher against the US dollar, Australian dollar and euro while easing slightly against the yen and Swiss franc, leaving the currency largely rangebound as markets braced for the Bank of England’s rate call.

Market Numbers

FTSE 100: Down (-0.01 per cent), 10,907.37
Euronext 100: Down (-0.01 per cent), 1,899.63
DAX: Down (-0.19 per cent), 25,411.24
NASDAQ: Down (-1.74 per cent), 24,442.94
S&P 500: Down (-1.52 per cent), 7,316.15

In the Headlines

Profit beat, new 2030 plan – Lloyds Banking Group (LSE:LLOY)
Lloyds Banking Group posted a second-quarter profit of £2.3 billion, ahead of analyst forecasts, and unveiled an “Accelerate 2030” strategy targeting a 20 per cent return on tangible equity alongside a new £1 billion share buyback. The results and growth plan reassure investors on the health of the UK banking sector ahead of this week’s Bank of England rate decision.

Shares slip despite guidance raise – London Stock Exchange Group (LSE:LSEG)
London Stock Exchange Group beat first-half earnings expectations and raised its full-year revenue guidance, yet its shares slipped as investors focused on the long-dated timeline of its round-the-clock trading initiative. The move highlights how execution timing, rather than headline earnings, is currently driving sentiment towards UK financial services stocks.

Currencies (vs GBP)

USD: Up (0.00 per cent), $1.3368
CHF: Down (0.00 per cent), Fr.1.0873
EUR: Up (0.01 per cent), €1.1658
JPY: Down (-0.02 per cent), ¥218.2905
AUD: Up (0.00 per cent), $1.9207
Bitcoin (BTC/GBP): Up, (0.30 per cent), £47,956.56

Commodities

Copper: Up
Gold: Down
Brent Crude: Down
Natural Gas: Up

U.S. equity futures traded modestly higher on Thursday as investors digested the Federal Reserve’s latest policy announcement and a fresh round of earnings from some of the world’s largest technology companies. Although the central bank left interest rates unchanged, a split vote among policymakers and ongoing inflation concerns kept markets on edge. Meanwhile, Microsoft (NASDAQ:MSFT) rallied after its results, while Meta Platforms (NASDAQ:META) moved sharply lower as investors scrutinised each company’s artificial intelligence spending strategy.

Futures Recover Following Wall Street Decline

By 01:55 ET (05:55 GMT), futures linked to the Dow Jones Industrial Average were up 27 points, or 0.1%. S&P 500 futures gained 15 points, or 0.2%, while Nasdaq 100 futures rose 133 points, or 0.5%.

The modest gains followed a weaker session on Wall Street, where investors focused on comments from Federal Reserve Chair Kevin Warsh after the conclusion of the central bank’s latest policy meeting.

Semiconductor stocks remained under heavy selling pressure. The Philadelphia Semiconductor Index dropped 5.33%, extending its losses over the past five trading sessions to more than 14%. The Nasdaq 100 also slipped into correction territory after falling over 10% from its recent high.

Market sentiment has been weighed down by concerns that the enormous investment flowing into AI infrastructure—including advanced chips and data centres—may take longer than expected to generate meaningful returns. Increased competition from Chinese technology companies has added to investor caution.

Those concerns came into sharper focus after Microsoft and Meta became the first major AI-focused technology companies to publish quarterly earnings.

Geopolitical developments also remained in focus after renewed U.S. military action involving Iran. Brent crude futures rose 1.4% to $92.01 per barrel after surging roughly 7% during Wednesday’s session.

Fed Signals Readiness Despite Holding Rates

The Federal Reserve kept its benchmark interest rate unchanged within a target range of 3.5% to 3.75%, although three members of the policy committee voted in favour of a rate increase.

Officials continue to face elevated inflation, which remains well above the central bank’s 2% objective, largely due to higher energy prices linked to the conflict involving Iran.

While June inflation figures were softer than expected, persistent volatility in oil markets has complicated the inflation outlook.

Although raising interest rates could help contain price pressures, policymakers must also consider the potential impact on a labour market that has shown limited hiring and subdued layoffs.

Kevin Warsh, who was overseeing only his second policy decision as Federal Reserve Chair, stressed that leaving rates unchanged should not be interpreted as a lack of willingness to act.

“There was nothing inertial about our discussions,” Warsh said.

Asked whether additional rate increases could help reduce inflation, Warsh responded that they remained an available policy tool but added, “I wouldn’t say it’s in isolation.” He also suggested that higher long-term Treasury yields since the June meeting were already helping tighten financial conditions.

U.S. Treasury yields rose following his remarks as investors searched for signals about the Fed’s next policy move.

“[T]he vague and arguably counterproductive communications from […] Warsh during the press conference make forecasting the Fed’s next move even trickier than it already was,” said Thomas Ryan, Senior North America Economist at Capital Economics.

Microsoft Delivers Another Strong Quarter

Microsoft exceeded market expectations after reporting continued strength across its cloud computing operations and growing adoption of its AI services.

Revenue for the quarter ended in June climbed 18% to $90 billion, while net income surged 31% to $35.8 billion.

Chief Executive Satya Nadella also disclosed that annual revenue generated by Microsoft’s AI-powered Azure cloud platform exceeded $100 billion for the first time.

Because Microsoft rarely reports Azure’s revenue separately, the announcement attracted considerable attention from investors comparing its performance with Google’s cloud business.

The software company also reaffirmed its commitment to AI investment. Capital expenditure reached $41 billion during the quarter, up nearly 70% year over year, lifting annual capital spending to $145.3 billion.

The strong Azure performance reassured investors that the company’s aggressive AI investment strategy continues to deliver results, sending Microsoft’s shares more than 7% higher in after-hours trading.

Meta Falls as Spending Plans Concern Investors

Meta Platforms posted record second-quarter revenue of $60.8 billion, but its shares fell more than 7% after the results were released.

The decline reflected investor concern over higher spending expectations. Meta increased its minimum capital expenditure forecast for the year to $130 billion from $125 billion previously, while maintaining the upper end of its guidance at $145 billion.

Although executives were expected to provide greater clarity around AI monetisation during the earnings call, investors remained cautious.

Meta also reported free cash flow of less than $1 billion, while quarterly net income declined 14% to $18.3 billion.

Its revenue outlook for the current quarter also disappointed expectations, and the company warned that ongoing legal proceedings related to the impact of social media on younger users could result in material financial losses.

Attention now shifts to Apple and Amazon, which are both scheduled to report quarterly earnings later on Thursday.

Qualcomm, Starbucks and Chipotle Also Update Investors

Elsewhere, Qualcomm (NASDAQ:QCOM) shares moved lower in extended trading after the semiconductor company issued weaker-than-expected guidance.

Chief Executive Cristiano Amon said the business intends to raise product prices to offset rising manufacturing and memory costs, adding that the wider semiconductor industry continues to experience supply chain challenges driven by strong demand for AI-related data centres.

Qualcomm posted adjusted third-quarter earnings per share of $2.21, narrowly missing FactSet estimates. Revenue declined 4% to $9.95 billion but still came in ahead of analyst forecasts.

Starbucks (NASDAQ:SBUX) delivered quarterly earnings above expectations, supported by improving customer traffic across North America and continued progress in its turnaround strategy. Its shares rose approximately 4% in after-hours trading.

Chipotle Mexican Grill (NYSE:CMG) also reported stronger-than-expected revenue and earnings, helped by continued restaurant expansion and branding initiatives. The company raised its full-year comparable sales outlook, sending its shares higher after the market closed.

European equity markets traded with little overall direction on Thursday as another wave of stronger-than-expected corporate earnings, led by a standout performance from Shell (LSE:SHEL), helped offset uncertainty surrounding U.S. monetary policy and renewed military tensions between the United States and Iran.

The pan-European STOXX 600 index was broadly unchanged in early trading. Germany’s DAX eased 0.2%, while France’s CAC 40 advanced 0.6%, with robust earnings from several major European companies helping to cushion the impact of geopolitical risks and macroeconomic uncertainty.

Shell Leads Earnings Momentum

Shell provided one of the strongest boosts to regional markets after more than doubling adjusted second-quarter profit to $9.8 billion, comfortably surpassing analyst expectations thanks to solid operational performance and stronger trading results.

Despite the positive earnings season, investor sentiment remained cautious after the U.S. Federal Reserve kept interest rates unchanged on Wednesday while offering little clarity over the future path of monetary policy.

Although Federal Reserve Chair Kevin Warsh reiterated the central bank’s commitment to tackling persistent inflation, his comments following the policy decision left investors uncertain about whether additional rate increases remain possible or whether interest rates will stay elevated for an extended period.

Geopolitical Risks Remain in Focus

Market sentiment was also affected by renewed U.S. military strikes inside Iran, marking another escalation in the conflict that has continued for five months and maintaining pressure on global energy markets.

Attention in Europe was also turning toward the Bank of England’s upcoming interest rate decision, alongside several key economic releases including second-quarter Eurozone GDP, July economic sentiment indicators and preliminary German inflation figures.

Technology Sector Mixed After Global Earnings

Technology shares continued to trade cautiously following a mixed batch of earnings from major technology companies in the United States and Asia.

Results from Samsung (USOTC:SSNHZ) and Microsoft (NASDAQ:MSFT) helped ease some investor concerns over artificial intelligence spending and elevated market valuations. However, Meta Platforms (NASDAQ:META) unsettled markets after reporting a 91% decline in quarterly free cash flow, highlighting the significant investment required to expand AI infrastructure.

Financials and Industrials Support European Markets

Outside the energy sector, a busy earnings calendar continued to support European indices.

Societe Generale (EU:GLE) gained 2% after reporting record quarterly profit, while Spain’s BBVA (TG:BBVA) rose 2.6% following higher second-quarter earnings. French asset manager Amundi (EU:AMUN) also exceeded expectations for core earnings.

Among industrial and technology companies, Airbus (EU:AIR) traded broadly unchanged after reaffirming its full-year aircraft delivery targets following a solid second quarter. Schneider Electric (EU:SU) surged 7.3% after raising its annual guidance on strong demand for energy infrastructure, while ArcelorMittal (EU:MT) reported earnings ahead of expectations as European trade protection measures continued to support the business.

Capgemini (EU:CAP) slipped 0.6% despite increasing its revenue growth outlook, while Sanofi (EU:SAN) raised its full-year sales guidance.

Automakers Deliver Mixed Performance

The automotive sector produced mixed results.

Renault (EU:RNO) fell 2.9% despite returning to profitability on the back of strong electric vehicle sales, while Germany’s BMW (TG:BMW) traded little changed after reporting a decline in second-quarter profit.

UK equities traded modestly higher on Thursday as investors looked ahead to the Bank of England’s latest monetary policy announcement, while digesting a hawkish pause from the U.S. Federal Reserve and weaker overnight performance on Wall Street.

As of 07:31 GMT, the FTSE 100 was up 0.17%. Germany’s DAX declined 0.42%, while France’s CAC 40 rose 0.62%. Sterling slipped 0.05% against the U.S. dollar to 1.3340.

Middle East Tensions Escalate

Geopolitical concerns returned to the forefront after reports that the United States resumed air strikes against Iran, ending a brief pause in military operations. According to Axios, a senior U.S. official confirmed the renewed strikes.

CENTCOM said it had carried out a “heavy wave of strikes” targeting Iranian Revolutionary Guard Corps (IRGC) facilities, including command centres, missile and drone installations, and coastal defence positions. The military said the operation followed an Iranian ballistic missile attack targeting a U.S. base in Jordan, adding that all incoming missiles were intercepted.

Separately, Iran’s IRGC navy claimed it had “targeted and stopped” three oil tankers in the Strait of Hormuz, according to Tasnim. Meanwhile, a drone strike hit the U.S.-owned LNG storage vessel Energos Winter at Egypt’s Damietta port. Egypt’s petroleum ministry confirmed a fire but reported no casualties.

U.S. President Donald Trump warned that Washington would strike Tehran “very hard,” telling reporters “they know it’s coming.” Trump also said he would be “quite disappointed” if China supplied weapons to Iran, adding that President Xi Jinping had assured him this would not happen.

Markets Assess Fed Decision, Await BoE

The Federal Reserve left interest rates unchanged at 3.50% to 3.75% on Wednesday, although three regional Fed presidents voted in favour of an immediate 25-basis-point increase, making it one of the closest policy decisions in recent years.

ING analysts James Knightley and Chris Turner described it as “the closest Fed decision for a number of years,” while noting Chair Kevin Warsh’s comments that policymakers had the “good family fight” he wanted before deciding by a “large majority” to leave rates unchanged. Warsh also said the central bank “will not hesitate to act” if inflation remains elevated.

ING continues to expect the Fed to leave rates unchanged through 2027 rather than deliver the September rate increase currently priced into markets, citing softer labour market conditions, easing housing inflation and tariff refunds supporting corporate profitability.

Attention now turns to the Bank of England, where policymakers are widely expected to leave UK interest rates unchanged later today.

Oil Prices Advance

Oil prices moved higher amid renewed geopolitical uncertainty. Brent crude gained 0.86% to $88.85 per barrel, while West Texas Intermediate rose 1.02% to $85.31.

Gold futures edged up 0.14% to $4,041.80 per ounce, although spot gold eased 0.54% to $4,044.41.

UK Corporate Highlights

Lloyds Banking Group (LSE:LLOY) reported first-half profit ahead of expectations and introduced its new Accelerate 2030 strategy, targeting a return on tangible equity of around 20% by the end of the decade through growth in retail banking and greater use of artificial intelligence.

Shell (LSE:SHEL) posted second-quarter adjusted earnings that more than doubled compared with a year earlier, beating market forecasts as stronger oil and gas prices, robust LNG trading and improved chemicals margins offset lower sales volumes from Qatar.

Rolls-Royce (LSE:RR.) increased its full-year profit guidance after first-half operating profit jumped 46%, supported by continued strength in civil aerospace aftermarket services, defence contracts and demand from data centre customers.

BAE Systems (LSE:BA.) also upgraded its 2026 outlook after reporting stronger-than-expected first-half earnings, citing sustained global defence spending and healthy demand across its portfolio.

Anglo American (LSE:AAL) more than halved its first-half loss, increased its dividend and said its proposed $53 billion merger with Teck Resources remains subject to regulatory approval in China.

London Stock Exchange Group (LSE:LSEG) raised its margin outlook for 2026 and increased the lower end of its revenue guidance after first-half results exceeded expectations, helped by elevated market volatility and stronger trading activity.

U.S. equity futures traded close to unchanged on Wednesday as investors refrained from making major moves ahead of the Federal Reserve’s latest policy announcement and a series of high-profile corporate earnings releases.

Markets broadly expect the central bank to leave interest rates unchanged, although traders continue to price in the possibility of an unexpected quarter-point increase.

According to CME Group’s FedWatch Tool, there is a 64.2% probability that the Fed keeps rates on hold, while the likelihood of a 25-basis-point increase stands at 35.8%.

Attention will also focus on the Fed’s policy statement, although investors expect less forward guidance under Federal Reserve Chair Kevin Warsh’s streamlined communication approach.

Meta and Microsoft Results Could Shape Market Sentiment

Investors are also waiting for quarterly earnings from Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT), which are scheduled for release after Wednesday’s market close.

The reports are expected to provide fresh insight into artificial intelligence spending and could influence investor appetite for large-cap technology stocks following recent valuation concerns.

Dow Outperforms Despite Weakness in Technology

Wall Street ended Tuesday with mixed results after another volatile trading session.

The Dow Jones Industrial Average gained 537.24 points, or 1.0%, to close at 52,747.32, marking its third consecutive advance.

The S&P 500 edged 0.2% higher to 7,428.78, while the Nasdaq Composite slipped 0.2% to finish at 24,876.91.

Earnings Drive Diverging Sector Performance

Sherwin-Williams (NYSE:SHW) climbed 8.3% after posting stronger-than-expected quarterly earnings and raising its full-year guidance.

Coca-Cola (NYSE:KO) also advanced 5% after delivering quarterly results that exceeded forecasts and improving its outlook for the year.

Technology stocks remained under pressure, however, with semiconductor companies leading the declines.

The Philadelphia Semiconductor Index dropped 4.5% for a fourth consecutive session, reaching its lowest closing level in more than two months.

The NYSE Arca Computer Hardware Index also lost 2.5%, while oil services companies weakened as crude prices continued to fall.

Defensive Industries Offer Support

Healthcare stocks provided a bright spot, with the NYSE Arca Pharmaceutical Index rising 2.3% to a record closing high.

Telecommunications, airlines and homebuilding companies also posted gains, helping to offset weakness across the broader technology sector.

European equities traded with little direction on Wednesday after joint military strikes by the United States and Saudi Arabia in Iraq heightened fears that conflict in the Middle East could escalate further.

Investors also remained cautious ahead of quarterly earnings from major U.S. technology companies and the Federal Reserve’s interest rate decision, both scheduled for later in the day.

The French CAC 40 fell 0.8%, while Germany’s DAX and the UK’s FTSE 100 each edged 0.1% higher.

Corporate Earnings Drive Individual Stocks

Logitech International shares dropped 7.2% after the Swiss computer peripherals manufacturer warned that a temporary shutdown at one of its suppliers’ factories could reduce third-quarter sales by as much as $200 million.

Wealth manager UBS (NYSE:UBS) gained 3.3% after reporting better-than-expected second-quarter earnings and announcing plans to repurchase $3 billion of its own shares over the next year.

Mining group Rio Tinto (LSE:RIO) rose 1.3% after posting a 47% increase in first-half profit.

Commodity trader Glencore (LSE:GLEN) advanced 2.8% as first-half earnings from its trading division doubled compared with the previous year.

Strong Results Lift Consumer and Banking Stocks

Greggs (LSE:GRG) jumped 12% after the UK bakery chain reported a stronger-than-expected 19.7% increase in first-half 2026 pre-tax profit.

Reckitt Benckiser (LSE:RKT), the maker of Dettol, climbed 5.3% after delivering what it described as a strong second quarter while maintaining its full-year guidance.

Standard Chartered (LSE:STAN) added 3.7% after announcing higher quarterly earnings alongside a $1 billion share buyback programme.

Mixed Performance Across Continental Europe

French spirits producer Remy Cointreau (EU:RCO) declined 3.6%, despite reporting first-quarter sales that exceeded expectations and reaffirming its annual targets.

Danone (EU:BN) fell 4.5% even after publishing solid first-half financial results.

Belgian chemicals company Solvay (EU:SOLB) gained 3.4% after second-quarter core earnings came in ahead of market forecasts.

Italian energy major ENI (BIT:ENI) advanced 4.2% after increasing the size of its share buyback programme following strong second-quarter results.

Industrials Lead the Gainers

Electrolux (LSE:0GQ1) surged 24% after the Swedish appliance manufacturer reported quarterly profit well above expectations.

Deutsche Bank (TG:DBK) rallied 5% after delivering a record second-quarter profit.

BASF (TG:BAS) climbed 4% after announcing plans to begin a €1 billion share buyback programme in August.

Utility company RWE (TG:RWE) rose 2% after upgrading its earnings outlook for both 2026 and 2027.

U.S. stock index futures traded little changed on Wednesday as investors awaited two major market catalysts: the Federal Reserve’s latest interest rate decision and quarterly earnings from artificial intelligence leaders Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT). At the same time, renewed conflict in the Middle East drove oil prices higher, adding to investor caution.

Futures Remain Near Unchanged

As of 03:20 ET (07:20 GMT), futures on the Dow Jones Industrial Average and Nasdaq were broadly flat, while S&P 500 futures edged up 0.2%, or 13 points.

Wall Street finished Tuesday with mixed performances. The Dow Jones Industrial Average gained 1.03% and the S&P 500 rose 0.21%, while the Nasdaq Composite slipped 0.22% as weakness in semiconductor stocks weighed on technology shares.

The Philadelphia Semiconductor Index extended its decline for a fourth consecutive session, falling to its lowest level since May.

Pressure on chipmakers intensified after reports highlighted increasing competition from Chinese semiconductor producers. Investor sentiment was also dampened after Alphabet raised its capital expenditure plans last week and SK Hynix (NASDAQ:SKHY) reported record operating profit that still fell short of lofty market expectations.

The developments have intensified questions about whether massive artificial intelligence investments will deliver the level of earnings growth investors have priced into leading technology companies.

John Higgins, Chief Economic Adviser at Capital Economics, said: “The share prices of some of the global tech giants at the heart of the AI revolution have come under pressure amid a variety of concerns, raising the question of whether the wheels are falling off the AI stock market train.”

Investors Await the Federal Reserve

Attention is now firmly focused on the Federal Reserve’s policy decision, scheduled for later today following the conclusion of its two-day meeting.

Officials continue to weigh the impact of higher energy prices and sustained AI-related investment on inflation. While June inflation figures came in below expectations, renewed fighting in the Middle East briefly pushed oil above $100 per barrel, while technology companies continue to invest aggressively in artificial intelligence infrastructure.

The U.S. labor market has also remained relatively stable, with hiring and layoffs showing limited movement.

Although higher interest rates could help reduce inflation, they also risk slowing economic growth and employment.

According to analysts at BofA Securities, today’s outcome could hinge on Federal Reserve Chair Kevin Warsh.

They said: “Warsh faces a difficult choice. Not hiking could challenge the Fed’s credibility on inflation. But raising rates would go against his framework of looking through supply shocks.”

CME FedWatch data indicated markets were pricing roughly a 70% probability that rates would remain unchanged between 3.50% and 3.75%, while the likelihood of a quarter-point increase remained just under one-third.

Markets are also expecting limited forward guidance after Warsh indicated he does not intend to provide investors with a detailed roadmap for future policy decisions.

Meta Investors Look for AI Returns

Meta Platforms (NASDAQ:META) is scheduled to release quarterly earnings after Wednesday’s closing bell.

The results will offer investors another opportunity to assess whether the company’s heavy artificial intelligence spending is beginning to generate stronger financial returns.

Earlier this year, Meta increased its projected 2026 capital expenditure to between $125 billion and $145 billion, compared with previous guidance of $115 billion to $135 billion.

The company has also warned that increased regulatory scrutiny in Europe and the United States could create a “material loss” related to “youth-related issues” and “additional trials scheduled for this year.”

Microsoft Faces High Expectations

Microsoft (NASDAQ:MSFT) will also report after the market closes as investors assess whether its substantial AI investments are translating into stronger growth.

The software company plans to invest approximately $190 billion during fiscal 2026, underscoring the fierce competition among leading technology firms.

Investors will pay particular attention to Azure cloud revenue, where analysts forecast constant-currency growth of between 39% and 40%.

Even if Microsoft achieves those expectations, Azure would still trail the growth rate recently reported by Google’s cloud division.

Oil Extends Rally

Oil prices advanced after fresh military strikes involving the United States, Saudi Arabia and Iran-backed groups renewed concerns over global energy supplies.

The escalation followed the interception of Iranian ballistic missiles aimed at U.S. forces in Jordan, ending a brief period of calmer trading in energy markets.

Iran also rejected an Omani proposal concerning control of the Strait of Hormuz, reducing hopes for renewed diplomatic negotiations.

By 03:17 ET (07:17 GMT), Brent crude had risen 3.5% to $87.01 per barrel, while West Texas Intermediate crude climbed 3.8% to $82.27 per barrel.