Key Highlights from Second-Quarter Earnings Season: Big Banks, Russell 2000, Tesla, EU, and Novo Nordisk

The second-quarter earnings season is off to a strong start for big banks, with JPMorgan Chase reporting results above expectations while Wells Fargo’s net interest income sinks. JPMorgan posted revenue of $50.99 billion and earnings per share of $6.12, beating analysts’ forecasts. However, CEO Jamie Dimon warned that inflation and interest rates may remain higher than expected due to various factors. On the other hand, Wells Fargo saw a 9.4% decline in net interest income, causing its shares to plummet almost 6%.

Meanwhile, the Russell 2000 index of small-cap companies is on the rise as investors continue to rotate out of large-cap tech stocks. The index jumped 3.6% on Thursday, outperforming the S&P 500 and Nasdaq Composite. This rotation comes as Federal Reserve rate cuts become more likely following a drop in consumer prices last month.

Tesla shares are extending their declines in premarket trading after reports that the company plans to postpone unveiling its robotaxi. The stock had been on an 11-session winning streak but turned negative for the year after an 8.4% plunge on Thursday.

In other news, the European Union has accused Elon Musk’s social media network, X, of breaching online content rules. The EU charged X with violating the Digital Services Act by allowing users to buy blue checkmarks that can deceive others into thinking the content is trustworthy.

On a positive note, Novo Nordisk’s stock is rising after an Oxford study showed that its Ozempic diabetes drug was linked to lower rates of dementia and other mental problems. The study found that patients on Ozempic had a 48% lower risk of dementia compared to those on a different drug.

Overall, U.S. stock futures are relatively unchanged as investors digest these developments and await further news in the market.