Futures tied to the Dow Jones Industrial Average rose about 0.2%, while S&P 500 futures gained 0.4%. Nasdaq 100 futures outperformed, climbing 0.7% as heavyweight technology stocks rebounded in premarket trading.
Microsoft surged more than 8% before the opening bell after reporting robust growth in its Azure cloud business, offering a boost to sentiment in the technology sector. Meta Platforms, however, fell about 9% after issuing a weaker-than-expected revenue forecast and reporting a sharp decline in second-quarter free cash flow.
Chip stocks remained under pressure, with Qualcomm falling more than 5% and Arm Holdings declining over 7% in premarket trade, extending the weakness that weighed on the Nasdaq in the previous session.
Investors also continued to assess the Federal Reserve’s policy decision on Wednesday. The US central bank left interest rates unchanged, but the outcome sparked a sharp rise in Treasury yields, with the 30-year Treasury yield climbing above 5.2%, its highest level since 2007, raising concerns that borrowing costs could remain elevated for longer.
Geopolitical tensions also remained in focus after reports of fresh US strikes on Iranian targets overnight, reviving concerns that an escalation in West Asia could disrupt energy markets and complicate the inflation outlook.
Markets are also gearing up for another busy day of earnings. Bristol Myers Squibb is scheduled to report before the opening bell, while Amazon, Apple and Coinbase are due to release quarterly results after the close.On the macroeconomic front, investors will closely watch the release of the Personal Consumption Expenditures (PCE) price index for June, the Federal Reserve’s preferred inflation gauge, along with weekly jobless claims and the first estimate of second-quarter US GDP. The data could provide fresh clues on the outlook for inflation, economic growth and the Fed’s policy path.
