U.S. stock futures are signaling a solid gain at Thursday’s open, following a mixed and volatile trading day on Wednesday.
Investor enthusiasm is being fueled by upbeat quarterly earnings reports from tech leaders Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT).
Shares of Meta Platforms, Facebook’s parent company, surged 11.3% in pre-market trading after the company delivered better-than-expected Q2 results and issued optimistic guidance for Q3 revenue.
Microsoft’s stock also climbed sharply, gaining 8.8%, buoyed by fiscal Q4 results that topped analyst forecasts on both revenue and earnings.
The positive sentiment in futures persisted after the Commerce Department released its June inflation data, showing consumer prices rose in line with expectations.
After a slight pullback on Tuesday, Wednesday’s session was marked by uncertainty, with major indexes oscillating around the unchanged line before closing with mixed results.
The Nasdaq Composite edged up 31.38 points (0.2%) to 21,129.67, the S&P 500 slipped 7.96 points (0.1%) to 6,362.90, and the Dow Jones Industrial Average fell 171.71 points (0.4%) to 44,461.28.
The mixed performance followed the Federal Reserve’s anticipated decision to keep interest rates steady in a divided vote. The Fed maintained the target range for the federal funds rate at 4.25% to 4.50%, emphasizing its goals of maximum employment and 2% inflation over the long term.
However, two Fed governors—Michelle Bowman and Christopher Waller—voted to lower rates by 0.25 percentage points.
In the press briefing, Fed Chair Jerome Powell said no decision has been made on rate cuts for September.
“We don’t do that in advance,” Powell said. “We’ll be taking that information into consideration and all the other information we get as we make our decision.”
On the economic front, ADP reported stronger-than-expected private sector job growth in July, with an increase of 104,000 jobs versus forecasts of 78,000.
The Commerce Department also revealed that U.S. real GDP rebounded by 3.0% in Q2, surpassing the anticipated 2.5% increase, after a 0.5% contraction in Q1.
This growth was largely driven by reduced imports, which positively affect GDP calculations, and higher consumer spending.
Despite these gains, most sectors showed only mild movement, leading to a subdued market overall.
Transportation stocks were a notable exception, with the Dow Jones Transportation Average dropping 3.0%.
Gold stocks also declined sharply, as the NYSE Arca Gold Bugs Index fell 2.9%.
Energy and commercial real estate sectors showed weakness, while semiconductor and brokerage shares ended the day higher.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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