US Stock Market Jumps: Dow Jones, Nasdaq, S&P 500 Futures Rally Ahead Of Mega Earnings; August 4th Outlook

The US stock market rallied overnight as treasury yields pulled back after the USA refrained from attacking Iran over the weekend, which lowered crude oil prices and seemingly calmed the growing concern regarding the energy crisis. On Monday, the Dow Jones closed nearly 694 points up, outperforming its peers and moving closer to its 52-week high. While the Nasdaq Composite index soared by 540 points and the S&P 500 gained over 110 points. On Tuesday, mega earnings will set the trend for Wall Street, with major focus on SpaceX's first quarterly earnings since market debut.

US Stock Market Futures

In the early hours of August 4th, the Dow Jones Industrial Average Index Futures surged by 137 points or 0.3% to trade around 53,471. While the Nasdaq 100 futures soared by 76 points or 0.3% to close at 28,967.75. Furthermore, the S&P 500 futures edged higher by 13.75 points or 0.2% to finish around 7,642.

US stock futures ticked higher on Tuesday after the major indexes kicked off the week with solid gains, supported by falling oil prices and a strong rally in heavyweight technology stocks, as per Trading Economics.

On Monday's trading session on Wall Street, the Dow Jones Industrial Average index skyrocketed by 693.38 points or 1.32% to close at 53,178.41, which is closer to its all-time high of 53,289.30.

Furthermore, the Nasdaq Composite index jumped 540.04 points or 2.13% to close at 25,913.90. And the S&P 500 index advanced by 110.78 points or 1.48% to finish at 7,600.50.

Mega-cap technology stocks emerged among top gainers, contributing heavily to Wall Street's rally overnight. Amazon surged nearly 5% to surpass $3 trillion market cap for the first time. Other stocks such as Microsoft also gained 5%, Nvidia was up 3%, Meta Platform surged 6%, Alphabet rose 5% and Tesla rallied 3.5%.

The Trading Economics data also added that investor sentiment was also lifted by a roughly 5% drop in oil prices after President Donald Trump canceled planned strikes on Iran to revive negotiations, easing concerns over inflation and the outlook for interest rates. Attention now turns to another round of corporate earnings due Tuesday, including results from SpaceX, AMD, Caterpillar, Merck and McDonald's, among others.

US Stock Market Outlook For August 4:

As per Charles Schwab report, earnings remain front and center this week, with AI darling Palantir headlining on Monday's calendar, while results from Space Exploration Technologies and Advanced Micro Devices will be in focus tomorrow. Investors will spend this morning parsing fresh manufacturing and construction spending data, although Friday's jobs report is likely to be the week's most closely watched economic release.

Palantir reported a $1.94 billion revenue, registering 93% YoY growth. Its US revenue soared 115% YoY to $1.57 billion, while US commercial revenue climbed 149% YoY to $764 million. Further, the company achieved rule of 40 crore of 155%. Its adjusted free cash flow is also $1.22 billion. Palantir broadly exceeded street estimates.

Focus will shift on SpaceX's first IPO earnings report on August 4th. FactSet cited that Wall Street expects SpaceX to book $13.2 billion in capital expenditures for the June quarter and deliver negative free cash flow of $1.9 billion. Analysts see full-year capex of almost $46 billion in 2026, followed by $87 billion in 2027.

"With AI-linked stocks wavering this summer, the bellwether's results will be closely watched. Expectations are high amid valuation concerns from some Wall Street analysts," said Charles Schwab's report.

Schwab's note added, some investors will be looking ahead to Space Exploration Technologies' first earnings report-due tomorrow post market close-after its June initial public offering, or IPO, raised a record $75 billion. SpaceX shares have struggled after a brief post-IPO surge, falling roughly 50% from their record high. Consensus expects the company to report revenues of $6.7 billion in the second quarter and a loss of $0.26 per share. With a market cap of over $1.4 trillion, some analysts have expressed valuation concerns, and short sellers have targeted the company since its debut.

Among economic data, watch out for Business Inventories, Factory Orders, and Trade Balance which are scheduled on Tuesday.

Overall, earnings on August 4th include of Advanced Micro Devices Inc. (AMD), Amgen Inc. (AMGN), Arista Networks Inc. (ANET), BP PLC (BP), Caterpillar Inc. (CAT), Cummins Inc. (CMI), Duke Energy Corp. (DUK), EOG Resources Inc. (EOG), Gilead Sciences Inc. (GILD) McDonald's Corp. (MCD), Merck & Co. (MRK), Pfizer Inc. (PFE), Space Exploration Technologies Corp. (SPCX), Toyota Motor Corp. (TM).

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