The U.S. equity futures market is showing clear signs of bullish momentum ahead of the opening bell, driven primarily by blockbuster earnings from several major tech names. However, under the surface, not all sectors are participating equally, creating a more nuanced and selective risk-on environment.

Futures Snapshot

• S&P 500 (ES): +0.8%
• Nasdaq 100 (NQ): +1.2%
• Russell 2000 (RTY): -0.6%

Large-cap technology stocks are powering the advance, with the Nasdaq 100 leading futures gains thanks to robust earnings and optimistic forward guidance. In contrast, small-cap equities are lagging, highlighting a divergence in market breadth.

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Major Movers and Key Takeaways

Tech Titans Lead with Conviction

Meta Platforms (META): +12%
Meta is surging in the pre-market following a strong earnings report and even more impressive forward guidance. The company not only exceeded expectations on the top and bottom lines but also raised its capital expenditure floor, signaling increased confidence in AI infrastructure and platform expansion. Investors appear to be rewarding Meta’s commitment to long-term growth, especially in AI and virtual ecosystem investments.

Microsoft (MSFT): +8%
Microsoft delivered another quarter of robust performance, backed by strong revenue guidance and a significant upward revision in full-year capital expenditures. The raised CapEx outlook is a bullish signal for continued investment in cloud and AI services, underscoring Microsoft’s strategy to cement its leadership in enterprise solutions and AI infrastructure. The market reaction suggests investors view these investments as a durable competitive advantage.

Semiconductors Face Headwinds

Qualcomm (QCOM): -6.5%
Despite delivering better-than-expected earnings, Qualcomm is under pressure due to a setback involving its Apple modem business. The market is weighing the implications of losing this high-profile contract, which could impact both near-term revenues and long-term strategic positioning in the mobile chip market. Investors seem cautious about Qualcomm’s ability to replace this lost business with growth in other areas.

ARM Holdings (ARM): -8%
ARM is facing notable selling pressure after issuing a weaker-than-expected forward outlook. While the company remains a critical player in the semiconductor IP space, the guidance disappointment suggests near-term growth could be more volatile than previously anticipated. The market’s reaction reflects heightened sensitivity to any softness in the chip sector, especially given its elevated valuations.

AI Boom Creates Collateral Winners

NVIDIA (NVDA): +2%
NVIDIA continues to ride the wave of strong demand for AI infrastructure, and today’s move is supported by bullish CapEx signals from both Microsoft and Meta. Even as the company faces a regulatory probe in China, investors are focused on its dominant position in AI GPUs and continued tailwinds from enterprise and hyperscaler investment.

Consumer and Pharma Stocks Join the Rally

eBay (EBAY): +13.5%
eBay is making a major move higher after posting a solid earnings beat and issuing strong guidance. The results reflect resilient consumer engagement and improved marketplace dynamics, suggesting the company is benefiting from cost discipline and operational efficiency in a more challenging e-commerce environment.

Comcast (CMCSA): +4.5%
The media and broadband giant reported above-consensus results on both earnings per share and revenue. The positive surprise was enough to lift the stock, as investors reprice expectations around cable strength and potential improvements in streaming profitability.

Bristol-Myers Squibb (BMY): +3.5%
Pharmaceutical major BMY saw a positive reaction to its earnings beat and upward revision of full-year guidance. The market appears to be gaining confidence in the company’s drug pipeline execution and financial outlook, even as the broader healthcare sector remains somewhat defensive in nature.

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Market Outlook

Today’s pre-market action paints a picture of tech-led optimism tempered by selective caution. While the Nasdaq soars on AI-driven CapEx enthusiasm, the weakness in small caps and semiconductors suggests investors are being selective about where they deploy capital. The heavy concentration of gains in mega-cap tech continues to underscore the theme of “quality growth” over broad-based participation.

As earnings season continues, market participants will likely keep a close eye on guidance and spending plans—particularly around AI, infrastructure, and consumer trends—which are proving to be key differentiators this quarter