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Below are AI-generated insights on today's premarket moves, powered by MarketReader technology.

Friday, July 31

Noteworthy macro moves today: Nikkei 225 Index (Japan) +4.1%. US Dollar Index +0.4%. Bitcoin -1.7%. Noteworthy US mega-cap moves today: Amazon.com Inc (AMZN) +10.1%. Apple Inc (AAPL) -7.9%. Alphabet Inc (GOOG) +1.7%.

Global equity indices are trading higher, with notable gains in the Nikkei 225 Index in Japan, which surged by 4.1%. This rally follows strong earnings reports from major U.S. tech companies like Amazon, which rose by 10.1%, boosting investor sentiment across technology sectors globally.

In the U.S., the Employment Cost Index (ECI), released today, showed compensation costs for civilian workers rose by 0.9% in Q2, slightly above forecasts of a 0.8% increase, indicating ongoing labor cost pressures that could influence Federal Reserve policy decisions moving forward.

Eurozone inflation data released today indicated an annual rate of 2.9% for July, matching expectations and up from June's figure of 2.8%. This uptick is likely to bolster arguments for potential interest rate hikes by the European Central Bank as they seek to manage rising prices amid ongoing geopolitical tensions affecting energy supplies.

In Germany, the unemployment rate rose to 6.4%, exceeding expectations and signaling economic weakness amidst broader challenges linked to geopolitical tensions and inflationary pressures that have intensified due to conflicts such as those involving Iran.

Consumer Discretionary Select Sector SPDR Fund (XLY) [+2.8%]
U.S. stock markets are experiencing a rebound, particularly driven by strong performances in technology stocks following better-than-expected earnings from major companies like Microsoft and Amazon. This positive market sentiment is reflected in the Consumer Discretionary Select Sector SPDR Fund, which is gaining in pre-market trading. The fund's performance is bolstered by significant contributions from holdings such as Amazon, which has returned 11.39%, and Tesla, which has added 1.27%. Favorable economic indicators, including rising retail sales and industrial production growth in South Korea and Japan, suggest stronger global demand, further benefiting the consumer discretionary sector.

VanEck Semiconductor ETF (SMH) [+2.3%]
Trading volume for the VanEck Semiconductor ETF has surged to $50 billion, more than quadrupling since January 2025. Despite a recent decline of 17.84% over the past month, this heightened activity reflects strong interest in semiconductor ETFs. The ETF's year-to-date performance remains robust at 48.33%. A recent rise in the tech-heavy Nasdaq, driven by strong earnings from major companies like Amazon and Microsoft, has positively impacted semiconductor stocks, contributing to a daily return of 2.3% for SMH. Earlier in the session, the ETF peaked at 3.47% before pulling back, but it continues to show gains since Thursday's close. The top contributors to SMH's performance include Nvidia, Micron Technology, and Lam Research, among others, indicating strong underlying support from its holdings.

iShares MSCI South Korea ETF (EWY) [+1.7%]
The South Korean KOSPI index surged nearly 20% today, marking a significant recovery after earlier declines this week. This strong performance in the broader market likely contributed to the positive sentiment surrounding the iShares MSCI South Korea ETF. The ETF has shown gains in pre-market trading, reflecting heightened investor optimism in the Asian markets. Additionally, strong earnings reports from major U.S. tech companies have further bolstered market sentiment, supporting potential gains for assets linked to the South Korean economy. Among the ETF's holdings, notable contributors included LPL and KEP, while PKX saw a slight decline. Overall, the positive movement in the KOSPI and related factors are influencing the iShares MSCI South Korea ETF's performance positively.

RBLX | -22.4% | -5.4B
Roblox Corp | Communication Services
Roblox Corp's stock is sharply lower in pre-market trading following its second-quarter fiscal 2026 results, which fell short of analyst expectations. The company reported bookings of $1.6 billion, 2% below consensus estimates, and significantly reduced guidance for the upcoming quarter, projecting third-quarter bookings between $1.57 billion and $1.65 billion, well below the anticipated $1.84 billion. Analyst downgrades from BTIG and Citi, with targets of $30 and $70 respectively, have further intensified concerns about Roblox's growth trajectory and lack of annual guidance. The combination of disappointing earnings and these downgrades has contributed to the stock's substantial decline.

RDDT | -14.0% | -4.1B
Reddit Inc | Communication Services
Concerns over "choppy" search referral traffic have driven Reddit Inc's stock sharply lower in pre-market trading. During the earnings call, CEO Steve Huffman highlighted volatility linked to Google's evolving AI-driven search algorithms, overshadowing the company's strong second-quarter results, which included a 61% revenue increase to $804.9 million and earnings per share of $1.25. Despite these positive metrics, investors reacted negatively to warnings about slowing user growth and uncertainties regarding upcoming AI data licensing renewals. Analysts have also adjusted their price targets, with Oppenheimer lowering theirs from $225 to $200 while maintaining an Outperform rating. This combination of factors has contributed to a notable decline in Reddit's share price ahead of the market open.

MTZ | -15.4% | -3.4B
MasTec Inc | Industrials
MasTec reported its second-quarter results earlier today, showing adjusted EPS of $2.22, which was below the consensus estimate of $2.23. While revenues of $4.37 billion slightly exceeded expectations, the company issued disappointing full-year guidance due to project delays, revising its diluted EPS outlook to $6.20 from prior forecasts. This negative adjustment, combined with the earnings miss, has led to a sharp decline in MasTec's stock price during pre-market trading. The stock is trading sharply lower as investors react to these developments.

GDDY | -16.4% | -1.9B
GoDaddy Inc | Information Technology
GoDaddy Inc. is under significant downward pressure following multiple analyst downgrades. Raymond James downgraded the stock from Strong Buy to Outperform, setting a price target of $100. William Blair also lowered its rating from Outperform to Market Perform. B.Riley and Benchmark adjusted their price targets downward, with B.Riley reducing its target to $170 from $190 and Benchmark lowering it to $140 from $185 while maintaining Buy ratings. These downgrades reflect concerns regarding the company's future performance amid a competitive landscape. In pre-market trading, shares are sharply lower since Thursday's close, continuing a notable decline that began in the previous after-market session.

IESC | +13.9% | +1.8B
IES Holdings Inc | Industrials
IES Holdings Inc reported strong third-quarter financial results, with revenue increasing 40% to $1.243 billion and net income rising 98% to $153 million compared to the same period last year. Operating income surged 60% to $178.5 million, significantly surpassing analyst expectations. The company also announced a two-for-one stock split effective August 21, 2026, aimed at enhancing liquidity for shareholders. This positive performance, along with a substantial backlog of approximately $4.5 billion, has contributed to a notable price increase in pre-market trading. Earlier in the session, shares pulled back slightly but remain higher since Thursday's close, reflecting ongoing positive momentum following yesterday's after-market gain.

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