New York, NY – Futures trading in the stock market showed an upward trend on Thursday following substantial gains in Big Tech companies Alphabet and Microsoft. The S&P 500 futures rose by 0.7%, while Nasdaq 100 futures saw a hike of 1%. Similarly, Dow Jones Industrial Average futures gained 30 points or 0.08%.
Alphabet’s shares surged by 11% in after-hours trading due to better-than-expected first-quarter earnings. The company also announced its first dividend payout along with a $70 billion buyback. On the other hand, Microsoft witnessed a 4% increase in share value after exceeding Wall Street’s projections for the fiscal third quarter.
The positive momentum in these major tech stocks could potentially uplift the major indices after a recent decline on Wall Street. The Dow plummeted by 375 points, while the S&P 500 and Nasdaq Composite dropped by 0.5% and 0.6% respectively.
The recent market downturn was triggered by a notable slowdown in growth and persistent inflation as indicated by fresh U.S. economic data. Despite GDP expanding by 1.6% in the first quarter, falling short of the Dow Jones forecast of 2.4%, the personal consumption expenditures price index for the same period surged by 3.4%.
Financial experts suggest that the Federal Reserve may focus more on tackling inflation rather than slower economic growth in the upcoming meetings. This could potentially lead to adjustments in interest rates and balance sheet runoffs as a response to the economic challenges.
Despite the recent market volatility, major indices are on the path to a winning week, with the S&P 500 up by 1.6% and the Nasdaq showing a gain of over 2%. Investors are eagerly anticipating earnings reports from energy giants Chevron and Exxon Mobil to be released on Friday, along with the PCE reading as a key inflation indicator closely monitored by the Fed.
As the market continues to react to economic data and corporate earnings, investors are keen on understanding the broader implications of these developments on the overall financial landscape.