(Editor’s note: The ETFs and economic data were updated.)
U.S. stock futures declined on Thursday, as the Dow Jones, Nasdaq 100, and S&P 500 indices fell, following Wednesday’s higher close.
On the economic data front, U.S. initial jobless claims dropped sharply by 22,000 to a seasonally adjusted 187,000 for the week ending July 18. The lower-than-expected figure was down from the previous week’s revised 209,000.
Adding to geopolitical uncertainty for investors, U.S. intelligence analysts are investigating whether Russia assisted Iran with target information or enhanced drone tech in recent precise strikes on CIA facilities in the Gulf, according to Reuters.
Meanwhile, the 10-year Treasury bond yielded 4.67%, and the two-year bond was at 4.31%. The CME Group’s FedWatch tool’s projections show markets pricing a 64.2% likelihood of the Federal Reserve leaving the current interest rates unchanged during July’s meeting.
| Index | Performance (+/-) |
| Dow Jones | -0.43% |
| S&P 500 | -0.42% |
| Nasdaq 100 | -0.48% |
| Russell 2000 | -0.16% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Thursday. The SPY was down 0.54% at $743.34, while the QQQ declined by 0.82% to $699.59.
Stocks In Focus
Tesla
- Tesla Inc. (NASDAQ: TSLA ) slipped 5.52% in premarket on Thursday after reporting mixed second-quarter financial results after market close Wednesday.
- Benzinga’s Edge Stock Rankings indicate that TSLA maintains a weak price trend in the short, long, and medium terms, with a poor value score.
Alphabet
- Alphabet Inc. (NASDAQ: GOOG ) was down 3.63% despite posting better-than-expected sales results for the second quarter. But investor concerns mounted as the company said it now projects to spend between $195 billion and $205 billion in capital expenditures in 2026.
- Benzinga’s Edge Stock Rankings indicate that GOOG maintains a weak price trend in the short term but a strong trend in the long and medium terms, with a moderate good score.
ServiceNow
- ServiceNow Inc. (NYSE: NOW ) jumped 7.25% after it reported quarterly earnings of 90 cents per share, which beat the Street estimate of 85 cents, and revenue clocked in at $3.99 billion, which beat the analyst consensus estimate of $3.93 billion.
- Benzinga’s Edge Stock Rankings indicate that NOW maintains a weak price trend in the short, long, and medium terms, with a solid growth score.
Quantumscape
- Quantumscape Corp. (NASDAQ: QS ) dropped 5.64% after it reported a quarterly loss. Its losses of 16 cents per share beat the analyst consensus estimate for losses of 18 cents.
- Benzinga’s Edge Stock Rankings i ndicate that QS maintains a weak price trend in the long, short, and medium terms.
Intel
- Intel Corp. (NASDAQ: INTC ) was up 1.42% ahead of its earnings scheduled to be released after the closing bell. Analysts expect it to report earnings of 19 cents per share on revenue of $14.40 billion.
- Benzinga’s Edge Stock Rankings indicate that INTC maintains a strong price trend in the long and medium terms but a weak trend in the short term.
Cues From Last Session
Utilities, materials, and energy stocks recorded the biggest gains on Wednesday while communication services and consumer discretionary shares were among the biggest losers.
| Index | Performance (+/-) | Value |
| Dow Jones | -0.012% | 52,218.58 |
| S&P 500 | -0.14% | 7,498.96 |
| Nasdaq Composite | -0.57% | 25,690.90 |
| Russell 2000 | -0.92% | 2,959.94 |
Insights From Analysts
Despite heightened Middle East tensions and market volatility, BlackRock maintains a “pro-risk stance” and continues to be overweight U.S. equities. BlackRock expects resilient economic growth and moderating inflation to persist, noting that the broader macro outlook remains mostly intact.
Driving this optimistic outlook is the artificial intelligence investment cycle and strong corporate earnings. BlackRock points out that U.S. corporate performance continues to surpass expectations, writing, “Earnings growth still comfortably outpaces the rising cost of capital”, which helps protect stock valuations even as interest rates stay elevated.
While acknowledging risks such as geopolitical supply shocks, BlackRock sees the U.S. economy as relatively insulated.
They emphasize that temporary market drawdowns do not warrant a retreat from equities: “While uncertainty has increased, we do not believe recent market moves warrant abandoning our overweight stance on U.S. equities, and we remain risk-on.”
Overall, BlackRock views high-quality companies with strong pricing power and AI exposure as well-positioned to drive market performance.
Upcoming Economic Data
Here’s what investors will be keeping an eye on Thursday.
- Initial Claims Drop: Seasonally adjusted initial unemployment claims fell to 187,000 for the week ending July 18, a decrease of 22,000 from the prior week’s revised 209,000.
- Four-Week Moving Average: The four-week moving average for initial claims decreased by 7,250 to 207,500.
- July’s Kansas City Fed manufacturing survey data will be out by 11:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session by 3.26% to hover around $89.66 per barrel.
Gold Spot US Dollar fell 0.91% to hover around $4,092.53 per ounce. The U.S. Dollar Index spot was 0.02% higher at the 101.1450 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.53% lower at $65,580.85 per coin over the last 24 hours.
Asian markets closed higher on Thursday, except India’s Nifty 50. Australia’s ASX 200, South Korea’s Kospi, Hong Kong’s Hang Seng, China’s CSI 300, and Japan’s Nikkei 225 indices rose. European markets were mostly lower in early trade.
Photo courtesy: Frontpage / Shutterstock.com
