Key Highlights
- Futures for major US indices advanced Thursday following a largely positive Big Tech earnings season
- Alphabet and Amazon posted impressive results driving share prices higher; Meta and Microsoft saw muted reactions
- AI capital expenditure projections from four tech giants totaled $725 billion for 2025
- Crude oil surged to multi-year peaks exceeding $126 per barrel on Iran-related tensions before retreating to $117
- March core PCE inflation registered a 0.3% monthly increase, marginally surpassing forecasts; first-quarter GDP growth reached 2% annualized
US equity futures posted solid gains Thursday morning as investors digested a flurry of technology sector earnings reports alongside newly released economic indicators. Dow futures advanced approximately 0.6%, with S&P 500 and Nasdaq 100 futures climbing between 0.3% and 0.7%.
The upward momentum followed Wednesday’s earnings releases from four technology behemoths. Alphabet and Amazon delivered results that surpassed analyst expectations, propelling their stock prices upward. Meta and Microsoft generated less enthusiastic investor response despite reporting respectable figures.
Meta shares declined as its infrastructure investment guidance disappointed the market. Microsoft dipped roughly 1% despite exceeding both revenue and earnings projections.
Nevertheless, the collective artificial intelligence infrastructure spending forecast from these four corporations totaled $725 billion for 2025. This substantial commitment bolstered semiconductor stocks and maintained bullish investor sentiment entering Thursday’s session.
Apple’s earnings report is anticipated after Thursday’s closing bell. Market participants are particularly focused on insights regarding how artificial intelligence investments are influencing the company’s top-line growth.
Crude Oil Volatility Injects Uncertainty Into Trading Session
Oil prices momentarily reached their loftiest levels since 2022 during early Thursday trading. Brent crude jumped 7% to surpass $126 per barrel following an Axios report indicating President Trump is evaluating potential military action regarding Iran.
Prices subsequently retreated below $117 as the initial market reaction moderated. This volatility introduced additional complexity to an already eventful trading morning.
The core Personal Consumption Expenditures index for March, which represents the Federal Reserve’s primary inflation gauge, increased 0.3% month-over-month. The year-over-year rate reached 3.2%, aligning with annual forecasts while marginally exceeding monthly projections.
First-quarter Gross Domestic Product expanded at a 2% annualized pace, falling short of the 2.3% consensus forecast. These economic releases provided investors with enhanced clarity regarding economic conditions as the second quarter commences.
Federal Reserve Maintains Current Policy, Powell Addresses Tenure
The Federal Reserve maintained its interest rate policy unchanged during Wednesday’s meeting, a decision that aligned with widespread market expectations. Chair Jerome Powell indicated his intention to complete his current term.
Powell’s remarks emerged as internal Federal Reserve disagreements regarding inflation strategy remained prominent. Thursday’s PCE release contributed additional context to ongoing deliberations about potential future rate adjustments.
Market attention now shifts to Apple’s quarterly results. Investors are seeking evidence that artificial intelligence capital deployment is generating tangible revenue acceleration at the technology giant.
The Dow, S&P 500, and Nasdaq all indicated positive openings based on early Thursday morning futures activity.
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