Dow futures surge 275 points: 5 things to know before Wall Street opens

• Intel reported Q2 revenue up 25% to $16.13 billion, beating expectations with 42 cents per share earnings, and raised 2026 capital spending to $20 billion, signaling sustained AI-driven server demand
• New tariffs of 10-12.5% imposed on 60 countries to replace expiring temporary tariffs, though exemptions for oil, gas, and selected food products limited immediate market impact
• Oil prices retreated with Brent crude falling below $100, but remain up double-digits weekly due to Red Sea shipping threats; Oracle secured a Pentagon software deal worth $3.31-6.99 billion

Market Summary: Dow Futures Surge on Intel Earnings

Key Market Movements:

US stock futures rallied Friday morning, with Dow futures up 275 points (+0.5%), while S&P 500 and Nasdaq 100 contracts gained approximately 0.3%. The advance follows Thursday's technology sector sell-off driven by AI investment concerns.

Intel Delivers Strong Results:

Intel reported robust Q2 earnings with revenue climbing 25% to $16.13 billion and adjusted EPS of $0.42 per share, both exceeding expectations. The chipmaker guided Q3 revenue between $15.8-16.8 billion and increased its 2026 capital expenditure plan to $20 billion, signaling sustained AI-driven demand for traditional server processors alongside accelerators.

Technology Sector Concerns Persist:

Despite Intel's performance, broader market anxiety remains over AI investment returns. Alphabet's higher spending guidance and Tesla's negative free cash flow Thursday renewed questions about profitability from data centers and AI infrastructure.

Trade Policy Developments:

The Trump administration implemented new tariffs of 10-12.5% on goods from 60 trading partners, replacing an expiring temporary 10% levy. Exemptions for oil, gas, and select food products helped contain immediate market reaction, though supply chain uncertainty persists.

Energy and Defense:

Brent crude retreated below $100 while WTI approached $91, though both remained on track for double-digit weekly gains due to Red Sea shipping threats. Oracle shares rose after securing a five-year Pentagon software contract worth $3.31 billion, potentially expanding to $6.99 billion over a decade with expected savings exceeding $441 million.

Outlook:

Markets await July preliminary PMI data (9:45 AM ET) and next week's Federal Reserve decision for direction, with roughly one-in-three odds pricing in a rate increase.