News in brief

Global Markets Edge Higher Amid Earnings Watch, Chipmaker Disappointments and Cost-Cutting Moves, US futures climb as AMD stumbles, Novo Nordisk trims costs, and investors await earnings from McDonald’s and Disney

Market Overview: US Futures Rebound After Economic Caution

US stock futures ticked upwards on Wednesday morning, rebounding slightly after a cautious session the day before. Investors are closely watching for signs that President Trump’s aggressive tariff agenda is beginning to filter through into company earnings and broader economic indicators.

By 07:43 GMT:

• Dow Jones futures were up 227 points (0.5%)
• S&P 500 futures gained 30 points (0.5%)
• Nasdaq 100 futures rose by 74 points (0.3%)

Markets remain on edge following recent warnings from major firms such as Yum! Brands, which said tariffs were reducing consumer spending. Industrial giant Caterpillar also noted headwinds, estimating tariffs could cost it up to $1.5 billion in 2025.

Despite these concerns, the second-quarter earnings season has shown resilience—over 80% of companies reporting so far have beaten forecasts. This has helped ease fears of an economic slowdown, although rising costs and a disappointing US services activity reading have fuelled talk of potential stagflation.

AMD Misses the Mark on AI Revenue Despite Broader Growth

Shares in chipmaker Advanced Micro Devices (AMD) fell in after-hours trading after the firm’s highly anticipated data centre revenue underwhelmed analysts. While revenue for the segment rose 14% year-on-year to $3.2 billion, it merely met estimates—unlike rival Nvidia, which posted a staggering 73% increase.

AMD’s CEO Lisa Su cited ongoing US export restrictions to China and a transition to its next-generation MI350 chips as key reasons behind the softer figures. The company did offer a more optimistic revenue outlook for Q3, forecasting around $8.7 billion, but that figure excludes any potential revenue from its MI308 chip in China, pending US government review.

The lukewarm reception underscores the growing competition in AI chips and highlights the geopolitical friction affecting semiconductor exports.

Earnings in Focus: McDonald’s and Disney to Report

All eyes are now on corporate giants McDonald’s and Walt Disney, with both companies set to release earnings later today.

• McDonald’s is expected to report solid sales growth, as it continues to innovate its menu offerings and navigate shifting consumer behaviour.
• Disney will likely provide updates on its streaming division, studio performance, and theme park revenue. Markets are also anticipating details about the upcoming launch of ESPN’s standalone streaming service this autumn.

In a notable development, the NFL has taken a 10% stake in ESPN, while Disney’s sports arm will now oversee NFL Network and related media assets—potentially reshaping the future of US sports broadcasting.

OpenAI Eyes Massive Valuation in Share Sale Talks

Artificial intelligence leader OpenAI is reportedly in discussions about a potential secondary stock sale, aiming to achieve a $500 billion valuation. If successful, it would mark a major leap from its previously reported $300 billion valuation.

The move follows a surge in user growth for ChatGPT, now hitting 700 million weekly active users, and comes after the company secured $8.3 billion in new funding as part of a broader $40 billion SoftBank-led round.

Novo Nordisk to Cut Costs Amid Growing Competition

Novo Nordisk, the maker of weight-loss drug Wegovy, announced plans to reduce operational costs to combat rising competition and pressure from copycat treatments.

Key figures:

• Wegovy sales rose 67% year-on-year to 19.53 billion Danish krone
• Total revenue grew 18% to 76.86 billion Danish krone, missing expectations

Following last week’s profit warning and leadership changes, Novo has reaffirmed its full-year guidance but will need to act decisively to fend off challenges from rivals like Eli Lilly and generic drug producers.

Conclusion: Markets Hold Ground Amid Mixed Signals

The global investment landscape is in a state of cautious optimism. Solid corporate results have provided support, but challenges persist—from chip market volatility and tariff tensions to shifting consumer trends and competitive pressures in sectors like healthcare and media.

As traders await key earnings and assess forward guidance from major companies, the resilience of equity markets will likely depend on how well firms adapt to changing conditions. For now, the outlook is balanced—hopeful, but undeniably fragile.

Sources : (Investing.com, Reuters.com)