New York, NY — Stock futures rose sharply Wednesday as major technology companies reported stronger-than-expected quarterly results. Futures for the Dow Jones Industrial Average increased by 138 points, or 0.3%, while S&P 500 futures advanced by 0.8% and Nasdaq 100 futures climbed 1.3%.
In after-hours trading, shares of Meta Platforms soared over 5% following impressive revenue figures for the first quarter. Microsoft also showed positive momentum, with its stock jumping nearly 7% on the strength of better-than-expected earnings for its fiscal third quarter, which included robust performance in its Azure cloud services division along with optimistic forecasts.
Earlier in the day, both the S&P 500 and Dow experienced volatility, recovering from substantial declines. The markets had been rattled by disappointing economic data from the Commerce Department, which revealed a 0.3% contraction in gross domestic product for the last quarter. This represented the first instance of negative growth since early 2022, with economists anticipating a modest increase of 0.4%.
Despite this lackluster economic news, investors regained confidence as they began to buy into the market late in the trading session. This turnaround helped the Dow and S&P 500 finish the day in positive territory after earlier losses that saw the S&P 500 dip by over 2% and the Dow by more than 780 points.
April has proven to be a tumultuous month for the stock markets, characterized by sharp movements following President Donald Trump’s announcements regarding tariff policies. At one point, the S&P 500 flirted with a bear market, dropping more than 20% from its peak in February, but managed to recoup some ground by month’s end. The index concluded Wednesday approximately 9% lower than its all-time high.
Nonetheless, the broader April performance for the S&P 500 and the Dow reflected declines, with losses of about 0.8% and 3.2%, respectively. In contrast, the Nasdaq Composite showed resilience, finishing the month up 0.9%.
“While we expect continued market volatility until trade policy becomes clearer, the most extreme swings in Trump’s administration seem to be behind us,” said Solita Marcelli, chief investment officer at UBS Global Wealth Management. “Investors should adopt strategies that manage volatility while keeping a forward-looking perspective.”
As trading resumed on Thursday, market watchers turned their attention to upcoming earnings reports from companies such as CVS Health, Eli Lilly, and McDonald’s in the morning and tech giants Apple and Amazon later in the day. Simultaneously, traders prepared for the release of weekly jobless claims and a key report on the U.S. manufacturing sector, with the nonfarm payroll report set to be unveiled on Friday.