Stock Market Update

Equity futures point to a mixed opening this morning ahead of a day full of potential catalysts.

Semiconductor stocks have largely stabilized overnight after two sharp retreats to start the week, despite an earnings miss from SK Hynix Inc. (SKHY 128.70, -1.48, -1.1%) that pushed South Korea's Kospi sharply lower. Plenty of notable earnings are in the fold this morning as the Q2 reporting season ramps up, with Meta Platforms (META 595.61, +2.20, +0.4%) and Microsoft (MSFT 394.07, +0.72, +0.2%) set to deliver results after the close.

On the macro front, investors are awaiting the FOMC's policy decision at 2:00 p.m. ET and the subsequent press conference from Fed Chair Kevin Warsh. The CME FedWatch tool currently assigns a 64.2% probability to the Fed leaving rates unchanged.

Oil is making a fairly sharp move higher after the U.S. intercepted multiple missile attacks from Iran across the Middle East, reclaiming some of its losses that have supported solid gains throughout the broader market despite the elevated volatility across semiconductor stocks.

In corporate news:

• KLA Corp (KLAC 176.40, -14.40, -7.6%) beat EPS expectations by $0.05, beat revenue expectations, guided Q1 EPS in-line and guided Q1 revenues in-line.
• Seagate Tech (STX 782.20, +34.90, +4.7%) beat EPS expectations by $0.61 and beat on revenues while guiding Q1 EPS above consensus and revenues above consensus.
• Teradyne (TER 348.07, +27.42, +8.6%) beat EPS by $0.38, beat revenue expectations, and guided Q3 EPS and revenues above consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note though South Korea's Kospi (-6.0%) continued struggling with SK Hynix falling nearly 10% after missing earnings expectations while tech stocks in Japan also had a poor showing. Japan's Nikkei: -1.5%, Hong Kong's Hang Seng: +2.0%, China's Shanghai Composite: +0.4%, India's Sensex: +1.2%, South Korea's Kospi: -6.0%, Australia's ASX All Ordinaries: +1.0%.

In news:

• An earthquake in Japan prompted multiple companies to close their facilities for inspections.
• The Trump administration banned imports of new Chinese robots and power inverters.

In economic data:

• Australia's Q2 CPI 0.6% qtr/qtr (expected 0.7%; last 1.4%); 3.9% yr/yr (expected 4.1%; last 4.1%). June Monthly CPI Indicator 3.8% (expected 4.0%; last 4.0%)

Major European indices trade on a mostly lower note while the U.K.'s FTSE (+0.3%) outperforms with help from strong results from Standard Chartered while UBS and Deutsche Bank also reported good earnings. STOXX Europe 600: -0.2%, Germany's DAX: UNCH, U.K.'s FTSE 100: +0.3%, France's CAC 40: -0.5%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -1.4%.

In news:

• Porsche's operating profit for the first half of 2026 was better than expected while Hermes has fallen to its lowest level since late 2022 after underwhelming results.
• European Central Bank policymaker Patsalides said that the outcome of the September policy meeting remains uncertain.

In economic data:

• Germany's June Import Price Index -0.7% m/m, as expected (last 0.7%); 6.1% yr/yr (expected 6.0%; last 6.8%)
• U.K.'s June Mortgage Approvals 58,200 (expected 57,000; last 56,570), June Mortgage Lending GBP7.73 bln (expected GBP3.95 bln; last GBP3.27 bln), and June net lending to individuals GBP9.50 bln (expected GBP5.50 bln; last GBP4.60 bln)
• Italy's May Industrial Sales 0.6% m/m (last -0.2%); 5.3% yr/yr (last 2.7%)
• Swiss July ZEW Expectations 10.0 (last -25.0)