NEW YORK, July 28, 2026, 09:03 EDT
- Dow futures gained 0.9%, as Nasdaq 100 futures slipped 0.8%.
- The difference in their one-month performance expanded to about nine percentage points.
- The Federal Reserve started its meeting, while consumer confidence figures are expected at 10 a.m.
U.S. equity futures diverged Tuesday as regular trading remained halted. Dow futures rose by 0.9%, but Nasdaq 100 futures fell 0.8%. S&P 500 futures fluctuated close to flat.
The 1.66-percentage-point difference indicated a rotation rather than a widespread sell-off in equities. Investors shifted toward firms generating immediate cash flow and pulled back from capital-intensive AI suppliers.
The pattern continued at Monday’s close. The Dow rose 0.51%, the Nasdaq Composite slipped 0.18%, and the Russell 2000 index, representing smaller firms, increased by 0.62%.
Initial, late futures reading as of about 8:40 a.m. EDT
| Futures contract | Tuesday | Five days | One month |
|---|---|---|---|
| Dow E-mini | up 0.89% | gained 0.83% | increased 0.54% |
| S&P 500 E-mini | added 0.09% | fell 1.39% | dropped 1.38% |
| Nasdaq 100 E-mini | lost 0.77% | declined 4.72% | slid 8.50% |
The spread between the Dow and the Nasdaq was 5.55 points over the past five days and 9.04 points over the past month. These lagging figures may not align with official opening levels.
The next major update will arrive from the top AI spenders. This week, Amazon.com NASDAQ:AMZN, Meta Platforms NASDAQ:META, Apple NASDAQ:AAPL, and Microsoft NASDAQ:MSFT are scheduled to report. Market participants are seeking proof that hundreds of billions of dollars allocated to infrastructure will translate into lasting cash flows.
Large technology firms have borrowed almost double the amount they did a year ago, Reuters said. This has brought a greater focus from investors on free-cash-flow conversion instead of just revenue gains. Dorian Carrell at Schroders LON:SDR described this attention as constructive: “We think that it’s healthy that the market’s questioning these things.” Reuters
The decline was led by chip sector shares. Advanced Micro Devices NASDAQ:AMD slipped approximately 4.2%, and Intel NASDAQ:INTC retreated about 5%. Corning NYSE:GLW tumbled 17% as cautious guidance weighed more than its stronger quarterly results.
Nvidia NASDAQ:NVDA declined again following a 5% drop on Monday. The Philadelphia Semiconductor Index is now down over 20% from its record high in June.
Markets felt the worldwide pressure. South Korea’s Kospi tumbled over 10%, activating a circuit breaker. Japan’s Nikkei lost roughly 4% as market participants weighed intensified competition from China.
Investor interest was spurred by results from cash-generating firms. Shares in Coca-Cola NYSE:KO climbed nearly 3.4% after the company raised its guidance for the full year. Coca-Cola is now targeting about 5% organic revenue growth along with 9% to 10% comparable earnings growth, with both figures presented on a non-GAAP basis.
Shares of United Parcel Service NYSE:UPS rose nearly 2.7% following an increase in its outlook. UPS forecasts 2026 revenue of approximately $91.2 billion and adjusted earnings per share of $7.22. Free cash flow for the first half jumped to $1.57 billion, up from $742 million.
Boeing NYSE:BA rose roughly 1%. The company reported quarterly free cash flow of $631 million, but operating profit came in below forecasts. Investors prioritized deliveries and better cash flow.
Lower energy costs also provided a boost beyond the tech sector. U.S. crude slipped 1.8% to approximately $81.15 per barrel. Brent shed 2.2% to nearly $84.02 while discussions between the U.S. and Iran went on.
The Federal Reserve began its two-day policy meeting on Tuesday. Markets priced in a 35.8% chance of a 25 basis point hike at Wednesday’s announcement. The rate decision is expected at 2 p.m. EDT.
Initial estimates put July’s consumer confidence at 92.0, up from the prior reading of 91.2. The Conference Board was scheduled to announce the data at 10 a.m. EDT.
Risks: Futures may swiftly change direction after markets open. Robust AI-driven returns could bolster the Nasdaq rally. However, an unexpected Fed rate hike or escalating conflict in the Middle East could accelerate selling pressure.
Currently, investors are distinguishing between growth powered by funding and growth fueled by debt. The nine-point monthly difference between the Dow and Nasdaq highlights how this distinction is impacting capital at the index level.
Related articles: NASDAQ:AMZN
