US stock futures climbed on Friday, with the Dow Jones Industrial Average gaining 275 points (0.5%), as Intel's robust earnings report provided a lift to the semiconductor sector and offset lingering concerns over trade policy and energy costs. S&P 500 and Nasdaq 100 futures also advanced roughly 0.3%, signaling a cautious rebound after Thursday's technology-led sell-off.
The recovery remains tentative, however, as investors digest fresh tariffs on imports from 60 trading partners and monitor oil price volatility. The market's focus now shifts to July business activity data, next week's Federal Reserve decision, and a steady stream of corporate earnings.
1. Intel Delivers Earnings Surprise, Lifts Chip Stocks
Intel shares surged about 5% in pre-market trading after the chipmaker reported second-quarter revenue of $16.13 billion, up 25% year-over-year, and adjusted earnings of $0.42 per share—both comfortably above analyst expectations. The company forecast third-quarter sales between $15.8 billion and $16.8 billion and raised its 2026 capital spending plan to $20 billion, with further increases expected next year.
The strong results suggest that demand for artificial intelligence is supporting not only specialized AI accelerators but also traditional server processors, offering a broader boost to the semiconductor industry. However, the wider tech rebound remains fragile, as Thursday's sell-off was driven by higher spending guidance from Alphabet and negative free cash flow at Tesla, reinforcing investor demands for clearer returns on AI investments.
2. New US Tariffs Add Policy Uncertainty
The administration introduced duties of 10% or 12.5% on goods from 60 trading partners, citing weak enforcement of forced-labor bans. These measures replace an expiring temporary 10% tariff and include exemptions for oil, gas, and selected food products. While the lower rates and carve-outs limited the initial market reaction, importers still face higher costs and renewed supply-chain uncertainty.
The muted global response contrasts with the sharp volatility seen in previous tariff announcements, but the policy shift adds another layer of complexity for investors already navigating elevated inflation and interest rate expectations.
3. Oil Retreats but Supply Risks Persist
Brent crude slipped back below $100 per barrel on Friday after a 7% surge on Thursday, while West Texas Intermediate eased toward $91. The pullback supported equity futures, but crude remains on track for a double-digit weekly gain as threats to Red Sea shipping keep supply risks elevated. Markets now assign roughly one-in-three odds of a Fed rate hike next week, up sharply from a week earlier, leaving technology valuations sensitive to both oil prices and Treasury yields.
For more on the energy market's impact, see Brent Crude Dips Below $100 but 14% Weekly Surge Signals Persistent Supply Risks.
4. Oracle Rises on Pentagon Deal
Oracle shares advanced in pre-market trading after the Pentagon awarded the company a five-year software agreement worth $3.31 billion, with an option that could lift the total to $6.99 billion over a decade. The deal consolidates military software licenses and is expected to generate at least $441 million in savings, underscoring the growing demand for enterprise cloud and software solutions from government clients.
5. Broader Market Context
The pre-market gains come after a volatile week dominated by big tech earnings and macroeconomic crosscurrents. The Dow tumbled 507 points earlier in the week as oil broke above $100 and tech capex fears intensified. Friday's rebound, led by Intel, suggests investors are becoming more selective rather than returning wholesale to the sector. Semiconductor shares were mixed in pre-market trading, reflecting this cautious optimism.
Looking ahead, the release of July US business activity data (PMI) will provide fresh signals on economic momentum, while next week's Fed decision remains a key catalyst for risk assets. With oil prices still elevated and trade policy in flux, market participants are likely to remain on edge.
This article is for informational purposes only and does not constitute financial advice.
