U.S. equity futures moved modestly higher on Thursday, pointing to a potential continuation of the previous session’s technology-led rally. Investors examined the Federal Reserve’s January meeting minutes for signals on interest rate direction, while oil prices climbed amid rising geopolitical tensions in the Middle East. Meanwhile, Walmart (NYSE:WMT) and Deere (NYSE:DE) are set to release quarterly earnings, offering insight into the health of key segments of the U.S. economy.
Futures tick up
As of 03:09 ET (08:09 GMT), Dow Jones futures were up 30 points, or 0.1%. S&P 500 futures gained 16 points, or 0.2%, and Nasdaq 100 futures advanced 86 points, or 0.3%.
Wall Street closed higher on Wednesday, led by strength in Nvidia (NASDAQ:NVDA). The semiconductor giant rallied after announcing a multi-year agreement to supply advanced chips to Meta Platforms. Markets are also positioning ahead of Nvidia’s highly anticipated earnings next week, often viewed as a barometer of momentum in the artificial intelligence sector.
Broader gains were seen across technology shares, including storage companies such as SanDisk and Seagate Technology, whose infrastructure plays a crucial role in AI expansion.
The rally helped calm concerns about the timeline for returns on substantial investments in AI-related infrastructure like data centers. Software stocks also gained ground, rebounding after recent volatility tied to fears of competitive disruption from emerging AI models.
Fed minutes suggest possible upside risks to rates
Market participants also focused on the minutes from the Fed’s January meeting for clues about future policy moves.
Analysts drew attention to language stating that “several participants” would have favored a “two-sided description” of the Federal Open Market Committee’s rate outlook — implying that rate increases remain a possibility if inflation does not move sustainably toward the 2% target.
After pausing its rate-cut cycle last month — which had begun in mid-2025 — policymakers are widely expected to resume easing later this year. With labor markets holding firm and inflation gradually moderating but still above target, some investors anticipate a potential rate cut as early as June.
That expectation remains largely in place, though Capital Economics noted that the Fed appears to be in “wait-and-see mode.” The firm also suggested that Kevin Warsh, President Donald Trump’s nominee to replace Jerome Powell as Fed Chair, may struggle to “convince his new colleagues of the need” for more aggressive rate reductions.
Oil rises on supply concerns
Crude prices extended gains as intensifying military activity in the Middle East fueled concerns over possible disruptions to energy supply.
Brent crude rose 1% to $71.04 per barrel, while U.S. West Texas Intermediate gained 1.1% to $65.74 per barrel.
Both benchmarks had already jumped more than 4% on Wednesday, reaching their highest closing levels since January 30.
Reports of heightened naval and military operations in the Persian Gulf increased fears about supply vulnerability. At the same time, optimism about any easing of sanctions on Russian energy exports faded following inconclusive talks between Russia and Ukraine.
Further support came from U.S. inventory data, with the American Petroleum Institute reporting a drop of roughly 609,000 barrels in crude stocks for the week ending February 13. Official figures from the Energy Information Administration are expected later Thursday.
Walmart earnings in focus
Walmart headlines Thursday’s earnings calendar.
The retail powerhouse’s stock has surged this year, lifting its market capitalization above the $1 trillion mark and cementing its status as the largest company in the consumer staples space.
Given the central role of household spending in the U.S. economy, Walmart’s results could offer meaningful insight into consumer trends during the critical holiday season. The company has benefited from inflation-conscious shoppers seeking lower-priced essentials.
The report may also shape expectations ahead of earnings from other major retailers such as Home Depot and Target. Together, these updates could shed light on whether the U.S. economy continues to exhibit a “K-shaped” pattern — with higher-income consumers maintaining strong spending while lower-income households face persistent cost pressures.
Deere set to report
Deere & Company will also release earnings before the opening bell.
Widely seen as a gauge of industrial demand, Deere previously warned that new U.S. tariffs could significantly impact its 2026 results.
The farm equipment manufacturer is expected to face margin pressure as a result, though CEO John May indicated that stable demand for forestry and smaller agricultural equipment, combined with cost-cutting measures, may partially offset the effects.
Tariffs on imported raw materials are projected to reduce Deere’s fiscal 2026 pre-tax earnings by about $1.2 billion, compared with an estimated $600 million impact in the prior year.
Meanwhile, weaker crop prices and rising production costs have prompted many farmers to delay purchases of large machinery such as tractors, instead opting for rental agreements or used equipment.
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