US futures surge on megatech earnings; Japan’s Yen gains after intervention

US equity-index futures increased, suggesting that the rally that drove Wall Street gauges to all-time highs following impressive megacap tech earnings may still be ongoing. Japan’s expected action caused the yen to slightly decline, reversing some of its gains.

Following strong earnings from tech megacaps, the underlying gauges closed at all-time highs on Thursday, causing contracts for the S&P 500 Index to rise 0.2% and those for the tech-heavy Nasdaq 100 to rise 0.1%.

Following the release of a robust revenue projection, Apple Inc.’s stock increased during extended trading. While some Asian markets were closed for a vacation, the Nikkei stock index in Japan slightly increased.

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After reaching a peak of 155.57 on Thursday, the yen was a little weaker at 157.14 per dollar.

The large increase in AI company investment caused the US GDP to grow during the first quarter, but it also revealed that inflationary pressures increased dramatically in March as a result of the war-related spike in petrol prices.

The Fed’s favourite indicator of inflation, the personal consumption expenditures price index, increased by 0.7% last month, the highest since 2022.

According to those familiar with the issue, inflation concerns are growing as European Central Bank policymakers are expected to hike interest rates at their next meeting in June unless there are positive developments on energy prices and the end of the Iran war.