July 31, 2025

Markets:

Stock futures are higher Thursday after strong earnings from tech titans Microsoft and Meta Platforms.

Microsoft jumped 8% and Meta surged 11% in premarket trading following earnings beats. Microsoft reported annual Azure revenue exceeding $75 billion, while Meta issued an upbeat third-quarter sales forecast, topping Wall Street estimates.

The rally in these “Magnificent Seven” names sets the tone ahead of earnings from Apple and Amazon, both reporting after the bell.

This follows a mixed session Wednesday, where the Dow and S&P 500 dipped and the Nasdaq posted a small gain. The Fed held rates steady at its July meeting, though not all members were in agreement.

Portfolio:

Boom — MSFT and META crushed it. The AI supercycle is alive and still in its early innings. Capex is ramping, and that spend will trickle down into other sectors. Few fully grasp what’s unfolding — but we’re in the midst of a tech revolution with a multi-year runway, similar to the late ’90s cycle. Pretenders will be flushed out. The winners? Massive.

AAPL and AMZN report tonight — pay close attention not just to their numbers, but to what they say about future spend, infrastructure, and growth. These earnings aren’t just about the individual names; they’re setting the tone for entire sectors as this AI-driven expansion continues.