S&P 500 and Nasdaq futures jumped Thursday, pointing to fresh record highs after blowout earnings from Meta (META) and Microsoft (MSFT) reignited optimism over Big Tech’s AI spending spree.
Nasdaq 100 futures (NQ=F) rose about 1.3%, while S&P 500 contracts (ES=F) gained nearly 1%. Dow Jones Industrial Average futures (YM=F) trailed with a 0.3% rise.
Meta surged 12% premarket after topping earnings forecasts and raising guidance, while Microsoft jumped over 8%, moving closer to a $4 trillion valuation.
Investors are now awaiting results from Apple (AAPL) and Amazon (AMZN) after the close for the next catalyst.
On the macro front, the focus shifts to the Fed’s preferred inflation gauge — the PCE index — after the central bank left rates unchanged for a fifth straight meeting Wednesday.
Chair Jerome Powell stressed “no decisions” had been made about a September cut, pushing back against President Trump’s claims one was imminent. Market odds of a September cut slid below 40% from 60% before the meeting, CME data shows.
Meanwhile, a new trade deal with South Korea eased tariff tensions ahead of Friday’s deadline. The agreement imposes a 15% tariff on South Korean imports, eliminates duties on U.S. exports, and includes a $350 billion investment pledge along with increased U.S. energy purchases.