U.S. stock index futures rose sharply on Thursday morning, driven by strong quarterly results from Microsoft and Meta Platforms. The upbeat reports offered relief to investors amid broader concerns over economic contraction and global trade tensions.
Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META), two of the most influential names in the “Magnificent Seven,” exceeded Wall Street expectations in their earnings announcements after Wednesday’s close. Microsoft shares jumped 8.2% in premarket trading, while Meta advanced 6.2%, together adding over $400 billion in combined market capitalization.
Microsoft’s outlook for Azure, its cloud-computing unit, surprised investors with stronger-than-expected growth projections. Meanwhile, Meta’s robust advertising revenues supported a 27% year-over-year increase in quarterly earnings.
These positive signals from tech leaders helped stabilize broader market sentiment, which had been shaken by first-quarter GDP data showing the U.S. economy contracted for the first time in three years.
Broader Tech Gains Extend Optimism
The strong performances by Microsoft and Meta sparked a broader rally across the technology sector. Other major tech names also advanced in premarket action:
- Nvidia (NASDAQ:NVDA) rose 4.3%
- Alphabet (NASDAQ:GOOGL) gained 1.1%
- Amazon (NASDAQ:AMZN) added 4% ahead of its earnings release
- Apple (NASDAQ:AAPL) dipped 1.3% after a federal judge found it violated a U.S. court order
Investors are now watching closely as Amazon and Apple are both set to report earnings after Thursday’s close, potentially adding fuel to—or dampening—the rally.
Stock futures reflected the positive sentiment:
- Dow E-minis rose 294 points (0.72%)
- S&P 500 E-minis climbed 66.25 points (1.19%)
- Nasdaq 100 E-minis jumped 328.5 points (1.67%)
Strong Earnings Offset Economic Worries
Despite a shrinking economy and ongoing trade policy volatility, corporate America is showing resilience. According to LSEG data, S&P 500 companies are now expected to post 11.5% earnings growth in Q1, up from 7.8% projected at April’s start.
Investors will also digest a heavy slate of economic data today, including:
- Weekly jobless claims
- Manufacturing PMIs
- Construction spending figures
Other key earnings due before the opening bell include Eli Lilly (NYSE:LLY), McDonald’s (NYSE:MCD), and Mastercard (NYSE:MA).
While April ended with losses for the Dow and S&P 500, the Nasdaq managed modest gains. The S&P 500 has now closed higher for seven consecutive sessions—its longest winning streak since November 2023.
Conclusion: Microsoft and Meta’s blowout earnings have reignited tech-sector momentum, suggesting that while macroeconomic uncertainty lingers, investor confidence in high-growth giants remains intact.
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