S&P 500 Futures Rise on Strong Tech Earnings
U.S. stock futures saw significant gains early Thursday, driven by robust earnings reports from technology giants Microsoft and Meta Platforms. Futures tied to the S&P 500 rose 1.02%, while Nasdaq 100 futures climbed 1.43%, reflecting investor optimism in the tech sector. Dow Jones Industrial Average futures also advanced, gaining 219 points, or 0.54%.
Microsoft and Meta Lead the Charge
Microsoft’s stock surged nearly 7% in extended trading after the company exceeded Wall Street expectations for its fiscal third-quarter earnings. The tech giant reported earnings of $3.46 per share on revenue of $70.07 billion, surpassing analyst estimates of $3.22 per share and $68.42 billion in revenue. Notably, Microsoft’s Azure cloud business demonstrated strong growth, further boosting investor confidence. Additionally, the company provided upbeat guidance for the coming quarters.
Meta Platforms also delivered impressive results, with shares climbing over 5% in after-hours trading. The Facebook parent company reported Q1 earnings of $6.43 per share and revenue of $42.31 billion, outperforming analyst expectations of $5.28 per share and $41.40 billion in revenue. Meta announced increased capital expenditures for its data centers, emphasizing its commitment to artificial intelligence development.
Tesla Shares Decline Amid Leadership Speculation
In contrast to the tech rally, Tesla shares fell more than 3% during overnight trading. Reports from The Wall Street Journal indicated that Tesla’s board has initiated a search for a new CEO to succeed Elon Musk. The electric vehicle manufacturer has faced challenges in recent quarters, including declining sales and profits, which may have prompted the leadership review.
Market Rebounds Despite Economic Concerns
Wednesday’s trading session marked the final day of April, characterized by volatility and a late-session rebound. The S&P 500 and Dow Jones Industrial Average overcame earlier losses to close in positive territory. At its lowest point, the S&P 500 was down over 2%, while the Dow fell more than 780 points. However, investors shrugged off disappointing economic data, including a 0.3% annualized decline in gross domestic product (GDP) for Q1 2025, according to the U.S. Commerce Department. Economists had anticipated a 0.4% gain.
Despite the late recovery, April ended on a mixed note for major indices. The S&P 500 and Dow posted monthly losses of 0.8% and 3.2%, respectively, while the Nasdaq Composite gained 0.9%.
Upcoming Earnings and Economic Data
Investors are now turning their attention to a series of key earnings reports and economic indicators. On Thursday, major companies such as CVS Health, Eli Lilly, and McDonald’s are set to release their quarterly results in the morning, followed by Apple and Amazon in the afternoon. Additionally, market participants await weekly jobless claims data and a U.S. manufacturing sector report. The highly anticipated nonfarm payrolls report is scheduled for release on Friday.
Market Outlook
While recent volatility has raised concerns, analysts remain cautiously optimistic about the market’s trajectory. UBS Global Wealth Management Chief Investment Officer Solita Marcelli noted that political and economic uncertainties, including trade policies, have contributed to market fluctuations. However, she emphasized that the sharpest policy swings may be behind us, paving the way for a more constructive outlook.
As the market digests corporate earnings and economic data, investors are advised to focus on strategies that manage volatility while identifying growth opportunities in resilient sectors such as technology.
Source: CNBC, The Wall Street Journal, U.S. Commerce Department