Analysis

Meta’s stock price rebounded slightly ahead of its earnings release, but a further upward revision in capital expenditures could cause the stock to extend its decline.

U.S. stock index futures were mixed in pre-market trading on Wednesday ET. Market focus is centered on the Federal Reserve's July interest rate decision and after-hours earnings from Microsoft and Meta. Meanwhile, escalating tensions in the Middle East have pushed oil prices higher, and a slight uptick in Treasury yields has kept risk appetite cautious.

Microsoft reports Q4 FY2026 today after close. Consensus: $87.67B revenue, $4.24 EPS. Azure guided 39-40%. FY2027 capex just disclosed at $255-260B - well above the $190B for 2026. At $397, here is what tonight must answer.

TradingKey - As of July 29 ET, Micron Technology (MU) shares have seen a cumulative correction of over 30% from the all-time high reached in late June. Although the company previously announced record-breaking fiscal 2026 third-quarter results and fourth-quarter guidance, the market opted for profit-taking rather than continuing to chase the rally. With AI memory demand remaining robust, why does Micron's stock price continue to pull back? Can it still rise in the future?

TradingKey - During the Asian session on July 29, following two consecutive days of circuit breakers in the South Korean stock market, Finance Minister Koo Yun-cheol apologized for single-stock leveraged ETFs during a parliamentary inquiry, admitting that the products were introduced to the market without prudent consideration.

Micron's CEO cashed out by selling shares at elevated prices, but his share reduction plan has yet to conclude.

TradingKey - Microsoft (MSFT) will release its fiscal fourth-quarter earnings after the bell on Wednesday, July 29, Eastern Time. Just a day before the report, Gene Munster of Deepwater Asset Management posted on X that Microsoft's earnings figures are "irrelevant," asserting that the real issue is that the "battle with the bots has just begun."

TradingKey - On July 29, Japanese and South Korean stock markets extended their decline, with the South Korean market once again becoming the hardest-hit area in Asian equities. Samsung Electronics fell over 5%, SK Hynix dropped nearly 10%, Kioxia plummeted nearly 14%, and SoftBank fell nearly 7%.

TradingKey - After the market close on July 28, ET, global hard drive leader Seagate Technology (STX) announced its fiscal fourth-quarter 2026 results. Not only did revenue and earnings for the quarter exceed Wall Street expectations across the board, but the performance guidance for the next fiscal quarter was also significantly higher than market forecasts. Seagate shares fell 8.5% in regular trading prior to the earnings release but rebounded by more than 10% in after-hours trading.

TradingKey - On July 29, it was reported that Meta (META) CEO Mark Zuckerberg stated that the U.S. maintains a leading position in artificial intelligence and should not rely on restricting or banning Chinese AI models. Instead, it should consolidate its competitive advantage through continuous innovation and the enhancement of its own technological capabilities. These remarks have once again drawn market attention to the global AI competition landscape and U.S.-China tech competition.

TradingKey - During the Asian trading session on July 29, the Nikkei 225 Index continued to weaken following the open, as the semiconductor sector extended the previous day's panic selling momentum. As of writing, Kioxia Holdings fell nearly 8%, SoftBank Group dropped over 6%, and Tokyo Electron declined nearly 5%.

TradingKey - SK Hynix reported its second-quarter 2026 results. Driven by the sustained growth in AI server demand, the company's revenue increased by 257% year-on-year, and operating profit surged by 557% year-on-year. However, SK Hynix's share price at one point fell by more than 11%.

TradingKey - During the Asian trading session on July 29, SK Hynix (SKHY) reported record second-quarter earnings, yet its failure to meet market expectations triggered stock price volatility. However, in response to widespread market skepticism regarding the sustainability of AI infrastructure investment, the memory giant provided a firm rebuttal during its earnings call.

TradingKey - Micron fell below $800 Tuesday as CXMT's blockbuster Shanghai IPO raised supply concerns, Apple reportedly sought waivers to source memory from Chinese suppliers, and SK Hynix fell 14.7%. At $812, the $803.95 has broken. $742 is the next support. Here is the full picture.

TradingKey - On Tuesday, the rotation in the U.S. stock market continued, with the Dow Jones Industrial Average rising more than 500 points. The rally was driven by better-than-expected corporate earnings, a decline in oil prices, and a shift of capital from the semiconductor sector to other sectors

TradingKey - NVIDIA fell 5% Monday and is extending losses Tuesday as the $250B OpenAI data center guarantee raised circular financing concerns. Samsung fell 13%, SK Hynix 14.7%. NVDA CDS hit a record one-day gain. Analysts say fears are overblown. At $194, here is what matters.

TradingKey - In early Asian trading on July 29, Japanese and South Korean stock markets rebounded following a sharp continuous correction the previous day. SK Hynix rose more than 3% after releasing its earnings report, Samsung Electronics gained over 4%, and Kioxia surged more than 7%.

The Dow Jones Industrial Average rose approximately 600 points, boosted by strong corporate earnings, falling oil prices, and sector rotation from the semiconductor industry to other areas. Memory and chip stocks extended yesterday's losses, while software stocks rebounded. Investors are focused on tomorrow's Federal Reserve interest rate decision and the technology earnings reports scheduled for this week.

On July 28 ET, Micron (MU) lost the $800 level during intraday trading, hitting a low of $789.09, its lowest point since late May. Jefferies analysts stated in a research report that memory chip prices may be nearing their peak. Although the market expects third-quarter memory chip prices to rise by another 25%-30% quarter-on-quarter, Jefferies' latest industry checks suggest a more moderate increase of between 15% and 20%.

On July 28, Eastern Time, the three major U.S. stock indices diverged. The sell-off in chip stocks continued to intensify, and AI hardware stocks extended their recent declines. The Dow Jones Industrial Average strengthened, while the Nasdaq 100 Index fell more than 1% and the Philadelphia Semiconductor Index dropped over 5%.