U.S. stock futures moved higher early Thursday as investors assessed a fresh round of Big Tech earnings, the Federal Reserve’s decision to keep interest rates unchanged, and renewed tensions in the Middle East.
Dow Jones Industrial Average futures gained 70 points (0.14%), while S&P 500 futures rose 0.35%. Nasdaq 100 futures outperformed, advancing 0.78%.
The gains followed a sharp sell-off in Wednesday’s session, when the Dow Jones Industrial Average plunged 1,153.18 points (2.19%), its steepest one-day decline since April 2025. The S&P 500 fell 1.52%, while the Nasdaq Composite lost 1.74%, finishing more than 10% below its intraday record high.
Asian markets traded mixed. Japan’s Nikkei 225 added 0.77%, while the Topix slipped 0.44%. South Korea’s Kospi declined 0.92%, extending the previous session’s losses, and the small-cap Kosdaq dropped 1.91%. Australia’s S&P/ASX 200 also ended 0.81% lower.
After the closing bell, earnings from major technology companies painted a mixed picture. Meta Platforms fell 7% in after-hours trading after issuing a weaker-than-expected revenue outlook. Meanwhile, Microsoft surged 8%, fueled by strong Azure cloud growth, highlighting the growing divide in how leading tech firms are benefiting from AI investments.
Markets also continued to digest the Federal Reserve’s decision to leave interest rates unchanged. The announcement pushed long-term Treasury yields higher, with the 30-year Treasury yield jumping 9 basis points to above 5.2%, its highest level since 2007.
Investors now turn their attention to Thursday’s key economic releases, including weekly jobless claims, the June Personal Consumption Expenditures (PCE) inflation report, and the first estimate of second-quarter U.S. GDP. Economists expect headline PCE inflation to rise 3.7% year-over-year, while core PCE, which excludes food and energy, is forecast to increase 3.3%.
The earnings calendar remains busy, with Bristol Myers Squibb reporting before the opening bell, followed by Amazon, Apple, and Coinbase after the market closes.
Frequently Asked Questions
Why did U.S. stock futures rise despite Wednesday's sharp market sell-off?
Stock futures recovered as strong Microsoft earnings, driven by Azure cloud growth, boosted investor confidence even after the Fed's policy decision and the previous session's heavy losses.
Why did the Federal Reserve keeping rates unchanged hurt the market?
Although rates were left unchanged, investors interpreted the Fed's stance as relatively hawkish. Rising Treasury yields increased borrowing costs and reduced the appeal of growth stocks, pressuring equities.
Why did Microsoft surge while Meta fell after earnings?
Microsoft exceeded expectations with strong AI and cloud revenue growth, particularly from Azure. Meta, on the other hand, disappointed investors with a weaker revenue outlook, leading to a sharp decline in its share price.
Which events are traders watching next?
Markets are focused on the U.S. PCE inflation report, weekly jobless claims, Q2 GDP data, and earnings from major companies including Amazon, Apple, and Coinbase, as these could shape expectations for the next market move.
