U.S. equity futures are indicating a firmer open on Thursday, pointing to potential gains after markets ended the previous session largely directionless.
Investor optimism is being supported by upbeat reactions to the latest batch of earnings from major technology companies.
Shares of Alphabet (NASDAQ:GOOGL) are rallying 7.1% in premarket trading after the Google parent delivered first-quarter revenue above expectations.
Amazon (NASDAQ:AMZN) is also advancing 3.7% ahead of the open following better-than-expected quarterly results.
Meanwhile, Qualcomm (NASDAQ:QCOM) is posting notable premarket gains after reporting stronger-than-forecast fiscal second-quarter earnings.
In contrast, Meta Platforms (NASDAQ:META) is under pressure, dropping 7.8% in premarket trading. Although its results beat expectations, investors reacted negatively to an increase in projected capital expenditures.
A modest pullback in oil prices is also helping support early gains, with U.S. crude futures down more than 1% despite ongoing geopolitical risks in the Middle East.
Previous session lacked clear direction
Following Tuesday’s decline, Wednesday’s trading session was marked by indecision. Both the Nasdaq and the S&P 500 fluctuated around flat levels before finishing with mixed results.
The Nasdaq edged higher by 9.44 points, or less than 0.1%, closing at 24,673.24, while the S&P 500 slipped 2.85 points, also less than 0.1%, to 7,135.95.
The Dow Jones Industrial Average underperformed, falling 280.12 points, or 0.6%, to 48,861.81, dragged lower by declines in Boeing (NYSE:BA), IBM (NYSE:IBM), and Travelers (NYSE:TRV).
Caution ahead of key developments
The muted market tone reflected investor hesitation ahead of important earnings releases from leading tech firms.
Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Microsoft (NASDAQ:MSFT) were among the companies reporting after the close.
Attention also remained on the latest policy decision from the Federal Reserve, which left interest rates unchanged following a notably split vote.
The Fed maintained the federal funds rate target range at 3.50% to 3.75%, citing its dual mandate of supporting employment and keeping inflation near 2% over time.
Beth Hammack, Neel Kashkari, and Lorie Logan backed holding rates steady but “did not support inclusion of an easing bias in the statement at this time.”
They reportedly objected to the phrase “additional adjustments to the target range,” given that the Fed’s recent policy moves have involved rate cuts.
Sector performance shows mixed picture
Despite the broader market’s lack of direction, several sectors posted strong gains. Networking stocks led the way, with the NYSE Arca Networking Index jumping 4.8% to a record close.
Energy stocks also moved higher alongside oil prices, lifting the NYSE Arca Oil Index by 3.2%.
Semiconductors, computer hardware, and oil services stocks also performed well, while gold, airline, and steel stocks experienced notable declines.
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