TLDR
- Futures for major US indices posted gains Thursday morning following mostly upbeat Big Tech quarterly reports
- Shares of Alphabet and Amazon advanced on strong earnings performance; Meta and Microsoft saw muted reactions
- AI infrastructure spending projections from four technology giants totaled $725 billion for the current year
- Crude oil briefly touched $126 per barrel—a four-year peak—on geopolitical tensions before retreating to under $117
- March core PCE inflation increased 0.3% month-over-month, marginally exceeding forecasts; first-quarter GDP growth registered 2% annual rate
Equity index futures advanced during Thursday’s pre-market session as investors digested a flood of technology sector earnings alongside newly released economic indicators. Futures tied to the Dow Jones Industrial Average climbed approximately 0.6%, with S&P 500 and Nasdaq 100 contracts posting gains ranging from 0.3% to 0.7%.
The upward momentum followed Wednesday’s earnings announcements from four prominent technology firms. Both Alphabet and Amazon delivered results that surpassed analyst projections, triggering share price increases. Conversely, Meta and Microsoft failed to generate investor enthusiasm despite reporting respectable financial figures.
Meta shares declined after the social media giant’s capital expenditure guidance fell short of market expectations. Microsoft experienced a roughly 1% decline despite exceeding both revenue and earnings estimates.
Yet the collective artificial intelligence spending forecast from these four corporations—totaling $725 billion for 2025—provided significant support to semiconductor stocks and maintained bullish sentiment entering Thursday’s trading.
Apple’s earnings report, scheduled for release following Thursday’s closing bell, remains a focal point. Investors are particularly interested in understanding how the company’s AI-related investments are impacting top-line growth.
Oil Spike Rattles Markets Before Pulling Back
Oil prices temporarily reached their highest point since 2022 during Thursday’s early trading. Brent crude jumped 7% to exceed $126 per barrel following an Axios report indicating President Trump was evaluating potential military actions targeting Iran.
The commodity subsequently retreated to levels below $117 as the initial market reaction subsided. This volatility introduced additional uncertainty during an already eventful market session.
The core Personal Consumption Expenditures index for March—the Federal Reserve’s primary inflation gauge—registered a 0.3% monthly increase from February. The annual rate reached 3.2%, aligning with year-over-year predictions but exceeding the monthly consensus.
First-quarter Gross Domestic Product expanded at a 2% annualized pace, falling short of the 2.3% consensus projection. These figures provided market participants with enhanced clarity regarding economic conditions as the second quarter begins.
Fed Holds Rates, Powell Comments on His Future
The Federal Reserve maintained its current interest rate policy during Wednesday’s meeting, a decision that aligned with widespread expectations. Chairman Jerome Powell indicated his intention to complete the remainder of his existing term.
Powell’s remarks emerged amid continuing internal Fed discussions regarding inflation policy direction. Thursday’s PCE data contributed to the ongoing conversation about the timing and likelihood of future rate reductions.
Market attention now centers on Apple’s upcoming earnings release. Participants seek evidence that AI-related capital investments are generating tangible revenue improvements at one of the globe’s highest-valued corporations.
The Dow Jones, S&P 500, and Nasdaq Composite all showed positive movement during early Thursday trading activity.
