Daily Summary: Equities Diverge as Tech Lags, Europe Rallies on Earnings & PMIs (24.07.2026)
Market Overview
US stock indices are experiencing mixed performance as the trading week approaches its end. The Dow Jones futures (US30) are leading with a gain of 0.5%, followed by the S&P 500 (US500) with a 0.2% increase, and the Russell 2000 (US2000) up by 0.25%. In contrast, Nasdaq 100 futures (US100) are down approximately 1%, primarily due to significant declines in major semiconductor stocks.
Key Earnings Reports
Intel (INTC)
Intel reported strong Q2 results, with revenue increasing by 25% year-over-year to $16.1 billion, surpassing expectations of $14.4 billion. The adjusted earnings per share (EPS) reached $0.42, driven by a 59% surge in data center revenue to $6.3 billion, fueled by rising demand for AI CPUs. Intel's Q3 revenue guidance of $15.8 billion to $16.8 billion exceeded Wall Street's estimate of $15.1 billion, leading management to raise the full-year capital expenditure forecast to around $20 billion.
Semiconductor Sector
Despite Intel's impressive quarter, the semiconductor sector faced a downturn, with the PHLX Semiconductor Index declining by 3%. Intel itself saw a reversal from premarket gains, ending the day down 4.3%. Other notable declines included Broadcom (-2.1%), SK Hynix (-7.9%), SanDisk (-7.8%), and Qualcomm (-1.6%), while Nvidia managed a slight gain of 0.5%.
Meta Platforms (META)
Meta is enhancing its AI capabilities with the rollout of autonomous task management features powered by its new Muse Spark 1.1 model. This allows the chatbot to handle recurring tasks such as daily briefings. Additionally, Meta has launched "Seller," a new application aimed at Facebook Marketplace merchants, ahead of its Q2 earnings release scheduled for July 29.
European Market Performance
European indices experienced a strong rebound, particularly in the financial sector, following robust earnings from BNP Paribas. The Spanish IBEX 35 led the gains with a 1.65% increase, followed by the German DAX (+1.36%), Italian FTSE MIB (+0.95%), British FTSE 100 (+0.91%), French CAC 40 (+0.88%), and Swiss SMI (+0.79%). Major bank stocks such as Banco Santander (+3.2%), BNP Paribas (+2.1%), Deutsche Bank (+2.1%), and UniCredit (+1.5%) contributed to this rally.
SAP (SAP)
SAP emerged as the top performer in the DAX, surging by 9.26%. The company reported mixed results, with Q2 revenue of €9.88 billion exceeding expectations, while EPS of €1.59 fell short. However, investor sentiment improved due to a 26% acceleration in cloud order growth, supported by a strong balance sheet with €3.2 billion in free cash flow and €2.2 billion in net cash, alleviating concerns over AI disruption risks.
Macro & Geopolitical Insights
Flash PMIs for the Eurozone and the US exceeded expectations, indicating solid economic expansion. The Eurozone Composite Flash PMI registered at 51.9, compared to an expected 50.2, while the US Flash Composite PMI came in at 53.6, above the anticipated 52.2.
In geopolitical news, China and Pakistan are reportedly pushing for renewed diplomatic efforts to resume stalled peace talks between the US and Iran, following a visit from the Iranian interior minister to Islamabad.
Market Movements in FX, Commodities & Crypto
Foreign Exchange
Risk sentiment improved in the foreign exchange markets, with most emerging market currencies strengthening against the US dollar. The Australian and New Zealand dollars led the gains, while the USDCAD rose slightly due to falling oil prices.
Energy
Crude oil prices fell nearly 3% to $91.30 per barrel, influenced by geopolitical developments involving China, Pakistan, and Iran. US natural gas futures decreased by 0.4%, while European TTF gas prices rose by 1.2%.
Precious Metals
Gold futures rebounded, climbing 0.4% to $4,068 per ounce, while silver saw a stronger increase of 1.8% to $58.70 per ounce.
Cryptocurrencies
Digital assets experienced a downturn, with Bitcoin falling 1.6% to $64,194 and Ethereum dropping 1.0% to $1,864.