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Investing.com-- U.S. stock index futures were slightly higher on Thursday evening after Wall Street saw modest gains amid a slew of corporate earnings including Apple and Microsoft.
Investors now turn their attention to a key inflation report set for release on Friday, seeking more insights into the Federal Reserve’s rate outlook following its hawkish hold earlier this week.
S&P 500 Futures inched 0.1% higher to 6,104.75 points, while Nasdaq 100 Futures rose 0.3% to 21,695.50 points by 18:40 ET (23:40 GMT). Dow Jones Futures ticked up 0.1% to 45,076.0 points.
Microsoft falls on weak forecast, Apple rises after the bell on strong Q1
Investors assessed a raft of earnings from mega-cap tech companies, including Apple Inc (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META), and Tesla Inc (NASDAQ:TSLA) in the wake of the emergence of a cut-price Chinese AI model earlier this week.
Microsoft shares declined 6% despite reporting quarterly results that beat estimates, as its cloud revenue and AI spending disappointed.
Apple reported better-than-expected results on Thursday, however, sales of its flagship iPhone handset device missed estimates.
Apple stock jumped more than 3% in extended trading after losing nearly 1% during the day.
Meta stock rose 1.6% on stronger-than-expected fourth-quarter revenue but warned of potential shortfalls in current-quarter sales, while Tesla gained nearly 3% as it focused on cost cuts and a lower-cost EV model.
In other sectors, Caterpillar Inc (NYSE:CAT) shares fell 4.6% on weak fourth-quarter revenue and a soft 2025 outlook, while United Parcel Service Inc (NYSE:UPS) dropped over 14% after cutting 2025 guidance and slashing Amazon (NASDAQ:AMZN) deliveries by over 50%.
Mixed earnings led to moderate gains on Wall Street with the NASDAQ Composite index rising 0.3% to 19,681.75 points in the regular trading session.
The Dow Jones Industrial Average gained 0.4% to 44,881.64, while the S&P 500 ended 0.5% higher at 6,071.18 points.
PCE inflation data on tap; tariff fears deepen
Investors are keenly awaiting the release of the personal consumption expenditures (PCE) price index on Friday, the Federal Reserve’s preferred measure of inflation.
Economists predict a 0.3% month-over-month increase, indicating persistent inflationary pressures. This data will be pivotal in shaping expectations for the Fed’s monetary policy trajectory.
Earlier this week, the Fed maintained its benchmark interest rate and signaled a hawkish stance, emphasizing its commitment to curbing inflation.
Fed Chair Jerome Powell highlighted the strength of the labor market and ongoing price pressures, suggesting no immediate plans to cut rates.
Despite the positive earnings reports, market participants remain cautious due to potential policy shifts under the current administration.
Recent tariff announcements by President Donald Trump have introduced uncertainties, particularly concerning trade relations with key partners such as China, Canada, and Mexico.
Markets are still uncertain regarding his trade policies and their impacts. On Thursday, he stated that he would soon determine whether to exempt Canadian and Mexican oil imports from the 25% tariffs set to take effect on Saturday.
