US stock futures rose on Thursday as Microsoft’s earnings-driven rally outweighed a sharp retreat in Meta, while investors prepared for a dense run of economic data and corporate results.
At about 7:15 AM ET, Dow futures were up 140 points, or 0.27%, S&P 500 contracts gained 0.53% and Nasdaq 100 futures advanced 1.18%.
The positive bias followed Wednesday’s broad sell-off, but conviction remained limited.
GDP, PCE inflation and jobless claims are due before the bell, long-term Treasury yields remain near multi-year highs, and Apple and Amazon report after the close.
5 things to know before the market opens
1. GDP and PCE could reset the rates trade
The first estimate of second-quarter GDP and June personal income and spending data are due at 8:30 am ET, alongside weekly jobless claims.
Investors will focus on core PCE inflation and consumer demand.
A hotter reading could push Treasury yields higher and pressure richly valued technology shares, while softer data may revive hopes that the Fed can remain on hold.
2. The Fed hold has shifted the warning to bonds
The Fed kept its target range at 3.5% to 3.75% in a 9-3 vote, with Beth Hammack, Neel Kashkari and Lorie Logan favouring a quarter-point increase.
The split reinforced concerns that inflation remains uncomfortable.
The 30-year Treasury yield reached 5.239%, its highest since 2007, increasing the discount rate applied to equities and raising financing costs across the economy.
3. Microsoft and Meta split the AI trade
Microsoft jumped about 8% before the bell after quarterly revenue rose 18% to $90 billion and Azure growth reached 43%.
Meta fell more than 8% as second-quarter free cash flow collapsed to $784 million and capital expenditure climbed above $31 billion.
The contrast is forcing investors to distinguish between companies already converting AI spending into cash and those still absorbing the build-out costs.
4. Apple and Amazon take over after the close
Apple and Amazon are scheduled to discuss quarterly results at 5 pm ET. Amazon’s report will be judged on AWS growth, margins and the returns from its expanding AI infrastructure.
Apple faces a different test centred on iPhone demand, China, services and its AI roadmap.
Positioning ahead of both releases could drive technology shares through the afternoon.
5. Oil near $91 keeps inflation risk alive
Brent traded around $91 a barrel after fresh US strikes on Iranian targets and continuing threats to shipping through the Strait of Hormuz and Bab el-Mandeb.
Tankers are still moving, but safe passage remains uncertain.
Another sustained oil rise would support energy shares while squeezing transport and consumer businesses. It could also dilute any market relief generated by softer inflation data.
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