US stock futures showed modest gains in pre-market trading on Friday, July 18, setting a cautiously optimistic tone ahead of the session. Dow Jones futures climbed 0.13%, S&P 500 futures rose 0.11%, and Nasdaq futures advanced 0.09%, reflecting tentative market confidence. European markets presented a mixed picture, with Germany's DAX dipping 0.13% and France's CAC40 edging up 0.10%, while the UK's FTSE 100 gained 0.08%. Oil prices strengthened significantly, with WTI crude surging 1.23% to $68.37 per barrel and Brent crude increasing 1.04% to $70.24 per barrel.

In a major development for cryptocurrency markets, former President Donald Trump is poised to sign an executive order permitting 401(k) retirement plans to invest in alternative assets like cryptocurrencies, gold, and private equity funds. This directive, expected as early as this week, aims to broaden investment options beyond traditional stocks, bonds, and mutual funds. It will instruct regulatory bodies in Washington to identify and remove barriers preventing professional management of 401(k) plans from offering exposure to non-traditional assets.

Following the House's passage of the landmark stablecoin bill, SEC Chair Paul Atkins revealed the commission is evaluating a regulatory "innovation exemption" to incentivize tokenization. Atkins emphasized that staff are exploring adjustments within the existing framework to foster growth in tokenized securities ecosystems, potentially including narrower relief forms and new trading methods. Concurrently, a sweeping $90 billion spending cut plan approved by the House has abruptly ended five decades of federal funding for public broadcasting, drawing inspiration from the "Government Efficiency Department" once led by Elon Musk. The bill, which also terminates foreign aid programs and shuts down the US Institute of Peace, passed with a 216-213 vote and awaits Trump's signature after Senate approval.

On the policy front, Trump is set to unveil an "AI Action Plan" focusing on deregulation, expanded energy sources for data centers, and federal legislation to preempt state-level oversight of AI. This initiative, stemming from an earlier executive order, could involve multiple directives to accelerate US leadership in artificial intelligence. In a dovish shift, Federal Reserve Governor Waller advocated for a 25-basis-point rate cut at the upcoming July meeting to support a labor market showing signs of weakness. Waller's stance contrasts with most policymakers who view employment as robust, highlighting his assessment that the job market is at a critical juncture.

Individual stocks made headlines with strong earnings reports. American Express (AXP.US) reported stellar Q2 results, with currency-adjusted transaction volume hitting $416.3 billion, surpassing expectations of $412.8 billion. Revenue net of interest expense grew 9.3% year-over-year to $17.9 billion, driven by higher card spending and net interest income, while total credit loss provisions stood at $1.4 billion. The company reaffirmed full-year revenue growth guidance of 8%-10% and EPS of $15-$15.50, planning an upgrade to its Platinum card amid intense competition. Chevron (CVX.US) surged over 3% after winning an arbitration against Exxon Mobil (XOM.US) over Hess's (HES.US) Guyana assets, clearing the path for its $53 billion acquisition of Hess, which jumped over 7%.

Netflix (NFLX.US) outperformed with Q2 revenue climbing 15.9% to $11.08 billion and EPS at $7.19, both beating estimates. The streaming giant raised its full-year revenue guidance to $44.8-$45.2 billion and operating margin outlook to 29.5%. Interactive Brokers (IBKR.US) posted impressive Q2 results, with revenue up 20.3% to $1.48 billion and adjusted EPS of $0.51, fueled by a 27% spike in commission income from heightened client trading activity. Taiwan Semiconductor Manufacturing Company (TSMC.US) maintained its 2025 capex forecast of $38-$42 billion despite strong AI-driven growth expectations, citing geopolitical risks like tariff policies as key concerns. NVIDIA (NVDA.US) flashed overbought signals as its 14-day RSI exceeded 80, prompting caution despite its 80% surge this year. In merger talks, Union Pacific (UNP.US) is exploring a potential acquisition of Norfolk Southern (NSC.US), which could create a railroad giant valued near $200 billion.

Key economic data releases include US June housing starts and building permits at 20:00 and 20:30 Beijing time, followed by the University of Michigan consumer sentiment index at 22:00. Late-night updates feature the weekly US drilling count at 01:00 and CFTC positioning data at 03:30.