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Meta Platforms reported earnings per share of $7.14 for the latest quarter, surpassing analysts’ forecast of $5.85, while revenue rose to $47.52 billion versus $44.72 billion expected. Growth was driven by strong ad demand across Facebook and Instagram, as well as rapid expansion in AI-powered products like Threads. Meta’s market capitalization reached about $1.94 trillion, reaffirming its position as a top-five global tech leader. The beat-on-both-lines performance prompted the company to raise its full-year guidance, citing resilient advertiser spending and continued user engagement. Investors view the results as validation of Meta’s pivot toward immersive technologies, potentially supporting further stock gains, though scrutiny over regulatory challenges and content moderation remains.

Microsoft reported $3.65 in earnings per share for the latest quarter, well above analysts’ $3.37 estimate, while revenue climbed to $76.4 billion versus the $73.8 billion forecast. Strong demand for cloud services and AI offerings underpinned the outperformance. The results sent Microsoft’s market capitalization to about $3.9 trillion, making it one of the few companies within striking distance of the $4 trillion mark. The tech giant also raised its guidance for the year, citing continued enterprise spending resilience. Investors may take these beats as a green light for further gains, helping to lift major tech indices, but high valuations keep the stock sensitive to any shifts in growth expectations or regulatory risks.

In its latest sale, the US Treasury auctioned 10-year notes at an average yield of 4.255%, down from 4.362% at the prior auction. Strong demand from pension funds and international investors drove the yield decline, as market participants sought secure, mid-term returns ahead of key Fed meetings. The drop in borrowing costs for the benchmark maturity may ease pressure on mortgage and corporate borrowing rates, while flattening the yield curve slightly. Lower long-term yields can support housing and business investment, although they also signal caution over future economic growth. The Treasury’s success suggests confidence in US creditworthiness but underscores expectations of a stable policy outlook in the months ahead.

The US Treasury sold three-year notes at an average yield of 3.669%, down from 3.891% at the prior auction. Strong demand for these medium-term securities helped push yields lower, reflecting investor caution amid mixed economic signals. Three-year notes are benchmark debt instruments that finance government spending over the medium term; their yields influence mortgage rates, corporate borrowing costs, and the shape of the yield curve. The drop suggests that money-market participants are seeking safety and locking in attractive yields before potential Federal Reserve policy shifts. Lower medium-term yields could ease borrowing costs for businesses and households, while also signaling expectations of slower growth or rate cuts ahead.

The Atlanta Federal Reserve’s GDPNow model now projects 2.5% real GDP growth in the third quarter, up from 2.1% in its prior update and ahead of the 2.1% consensus. The upward revision reflects stronger-than-expected readings on consumer spending, housing starts, and industrial production. GDPNow provides a real-time “nowcast” of quarterly growth based on incoming economic data, and the jump to 2.5% suggests the US economy is sustaining moderate momentum into the fall. A firmer growth outlook may reduce market expectations for an imminent Federal Reserve rate cut and lend support to Treasury yields. Investors will look to upcoming retail sales and durable goods reports to gauge whether this forecast holds.

US mortgage rates ticked down, with the MBA 30-year fixed rate falling to 6.77% from 6.83%, helping spur a 3.1% weekly rise in overall mortgage applications after a 3.8% drop a week earlier. The purchase index climbed to 158.0, its highest since May, signaling renewed home-buying interest, while the broader market index rose to 253.4. Refinancing demand surged too, with the refinance index jumping to 777.4 amid lower borrowing costs. The mortgage market index tracks total application volume; gains suggest consumers are taking advantage of slight rate relief. As applications rebound, housing starts and consumer spending could get a boost, though affordability remains challenged by rates near multiyear highs.

In the latest Treasury auctions, the 52-week bill sold at 3.760%, down from 3.925% at the prior sale, while the three-year note fetched 3.669%, below 3.891% previously. Strong investor demand for these securities helped push yields lower, reflecting a cautious outlook amid mixed economic data and expectations that the Federal Reserve may hold policy rates steady. Treasury bill and note auctions determine the yield investors earn on government debt over various maturities; lower yields imply reduced borrowing costs for the Treasury and signal robust demand. This decline in short- and medium-term borrowing rates could support broader credit conditions and bolster market sentiment ahead of key inflation and jobs reports.

Growth in America’s services economy nearly ground to a halt in July, with the ISM non-manufacturing PMI easing to 50.1 from 50.8, well below the 51.5 forecast. The Business Activity Index remained in expansion at 52.6, down from 54.2, while new orders dipped to 50.3, barely above the 50-point threshold. Employment slipped further into contraction at 46.4, its fourth decline in five months, even as firms added minimal staff. Cost pressures surged, with the Prices Index jumping to 69.9, the highest since October 2022. The non-manufacturing PMI, a composite of activity, orders, employment and supplier deliveries, signals only marginal growth, suggesting the Federal Reserve may hold rates steady as inflation risks persist.

US private-sector activity accelerated sharply in July, with the S&P Global composite PMI climbing to 55.1—well above the 54.6 forecast and June’s 52.9—marking the fastest growth in four months. The services PMI rose to 55.7, outpacing the 55.2 estimate and up from 52.9 last month, driven by strong new orders and robust customer demand. Employment expanded at its quickest pace in over a year as firms added staff to keep up with surging workloads. Input-cost pressures remained elevated but eased slightly, allowing companies to lift selling prices modestly. The data signal broad-based strength across both manufacturing and services, suggesting that the US economy maintained solid momentum heading into Q3 and reinforcing expectations that the Federal Reserve can tread carefully on further rate moves.

The Redbook Index, which tracks same-store sales growth at major US retailers, surged to 6.5% year-on-year in the latest week, up from 4.9% previously. The sharp acceleration reflects robust consumer demand driven by discounting and back-to-school promotions, as well as strength in apparel and electronics categories. While seasonal factors played a role, underlying spending held up across both brick-and-mortar and online channels. Redbook’s outperformance suggests broader retail sales data for August will exceed expectations, supporting forecasts for strengthening consumption and GDP growth. Healthy retail trends may also bolster corporate earnings and help anchor inflation expectations, giving the Federal Reserve more latitude in calibrating monetary policy as it balances growth with price stability.

The US trade gap shrank to $60.2 billion in June, down from $71.7 billion in May, as exports dipped slightly to $277.3 billion (from $278.6 billion) and imports tumbled to $337.5 billion (from $350.3 billion). The narrower deficit reflects weaker domestic demand for foreign goods alongside resilient outbound shipments of services and agricultural products. The trade balance—exports minus imports—is a key GDP component; a smaller deficit reduces the drag on growth. June’s data suggest net exports will contribute less negatively to second-quarter GDP and may lend modest support to the dollar amid growing concerns over global demand dynamics. However, the ongoing gap still underscores America’s reliance on foreign supply chains and the need for stronger domestic manufacturing.

Yields on US Treasury bills rose modestly in the latest auctions, with the four-week bill selling at 4.290%, up from 4.245%, and the eight-week bill also at 4.290%, compared to 4.265% previously. Solid investor demand kept subscription rates strong, but the slight uptick in yields reflects caution ahead of key economic data and Fed meeting minutes due this week. Treasury bills are zero-coupon securities issued at a discount; their yields indicate the cost of short-term borrowing for the government. Higher yields can translate into increased funding costs across money markets and influence repo rates. The move suggests market participants are bracing for potential rate volatility even as they lock in attractive short-term returns.