S&P 500 and Nasdaq futures surged Thursday, aiming for fresh record highs after strong earnings from Meta (META) and Microsoft (MSFT) bolstered confidence in Big Tech’s massive AI bets.
Futures on the Nasdaq 100 (NQ=F) jumped about 1.3%, while S&P 500 contracts (ES=F) gained nearly 1%. Dow Jones Industrial Average futures (YM=F) lagged behind, up just 0.3%.
Meta shares soared 12% in premarket trading after beating earnings expectations and issuing robust guidance, even as AI spending accelerates. Microsoft stock leapt more than 8%, putting it on track to become the world’s second company valued at $4 trillion.
Traders are now eyeing after-hours results from fellow “Magnificent Seven” giants Apple (AAPL) and Amazon (AMZN) to see if the rally can extend.
Macro Backdrop
Investors await the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, for further clues on interest rate direction.
Stocks closed mixed Wednesday after the Fed left rates unchanged for the fifth consecutive meeting, with two dissenting votes. Chair Jerome Powell emphasized that “no decisions” have been made on a September rate cut — pushing back against President Trump’s claim that a cut was imminent.
Market odds of a September cut slipped to under 40% Thursday, down from about 60% pre-meeting, per CME data.
Trade Developments
Separately, new trade deals eased tensions ahead of Friday’s tariff deadline. A pact with South Korea announced late Wednesday set a 15% tariff rate on its imports, while U.S. exports will face zero duties in return.
Seoul also committed $350 billion in U.S. investments and pledged to boost purchases of American energy products, according to Trump’s social media post.
