U.S. stock futures pointed to a weaker open on Thursday, as investors digested a wave of corporate earnings from major technology companies and assessed the implications of the Federal Reserve’s latest rate decision.
As of early premarket trading, the Dow Jones, S&P 500, and Nasdaq futures were all in negative territory, suggesting a softer start for Wall Street after a volatile midweek session that ended with mixed results.
Tech Earnings Drive Early Pressure
A sharp selloff in major tech names looked set to weigh on sentiment at the open.
Meta Platforms (NASDAQ:META) plunged nearly 10% premarket, even after reporting better-than-expected third-quarter results, as the company warned of higher spending related to its artificial intelligence (AI) initiatives.
Microsoft (NASDAQ:MSFT) shares also slipped before the bell. The software giant topped forecasts for its fiscal first-quarter results but signaled that capital spending would accelerate through the year.
By contrast, Alphabet (NASDAQ:GOOGL) surged 7.9% premarket after the Google parent delivered strong results that beat expectations on both revenue and profit.
Outside of tech, Eli Lilly (NYSE:LLY) gained ground after posting stronger-than-expected third-quarter earnings and raising its full-year revenue outlook, adding support to the healthcare sector.
Geopolitics May Cushion Declines
Some optimism stemmed from news of progress following the high-profile meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
The two leaders agreed to a series of trade-related measures aimed at easing tensions between Washington and Beijing.
The U.S. will reduce fentanyl-linked tariffs on Chinese imports from 20% to 10%, while China agreed to resume purchases of American soybeans and temporarily suspend new export restrictions on rare earths.
In exchange, Washington will pause implementation of its 50% penetration rule on export controls.
Recap: Wednesday’s Whipsaw Session
Stocks ended Wednesday’s session with pronounced swings as investors reacted to the Federal Reserve’s policy decision and comments from Chair Jerome Powell.
The Nasdaq Composite rose 0.6% to a record 23,958.47, driven by gains in hardware and semiconductor stocks. The S&P 500 ended virtually flat, down 0.30 points at 6,890.59, while the Dow Jones Industrial Average slipped 0.2% to 47,632.00.
Volatility spiked late in the session after Powell struck a cautious tone following the Fed’s widely expected 25-basis-point rate cut, which brought the federal funds rate down to a 3.75%–4.00% range.
Powell said another move in December was “not a foregone conclusion,” adding that officials held “strongly differing views about how to proceed” at the year’s final meeting.
He also cited growing uncertainty from the ongoing government shutdown, which has delayed key economic data releases.
The comments dampened expectations for further near-term easing. According to CME’s FedWatch Tool, the probability that the Fed will leave rates unchanged in December rose to 34.1%, up from 9.1% just a day earlier.
Sector Movers: Tech Shines, Real Estate Slumps
Despite the late-session volatility, the technology sector extended its rally, with the NYSE Arca Computer Hardware Index jumping 6.3% to a record high, powered by a 19% surge in Seagate Technology (NASDAQ:STX) after upbeat earnings.
Oil service stocks also advanced, tracking a rebound in crude prices, as the Philadelphia Oil Service Index climbed 2.6%.
However, interest rate-sensitive sectors came under pressure. The Dow Jones U.S. Real Estate Index dropped 2.6%, and the Philadelphia Housing Sector Index slid 2.3%.
Airlines also struggled, with the NYSE Arca Airline Index falling 1.4% on weaker travel sentiment.
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