U.S. equity futures edged higher as investors weighed a fresh batch of technology earnings alongside the Federal Reserve’s latest policy decision. The central bank opted to leave interest rates unchanged, pointing to the continued resilience of the U.S. economy, while major tech names including Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) reaffirmed plans to sustain heavy investment in artificial intelligence. Elsewhere, Tesla (NASDAQ:TSLA) announced a commitment to back Elon Musk’s private AI venture, and gold prices pushed to yet another record high.
Futures point higher
U.S. stock futures were mostly higher early Thursday as markets digested the Fed’s decision and results from several mega-cap technology groups. By 03:02 ET, Dow futures were little changed, S&P 500 futures were up 13 points, or 0.2%, and Nasdaq 100 futures had gained 85 points, or 0.3%.
On Wednesday, the S&P 500 climbed above the 7,000 mark for the first time, buoyed by optimism around artificial intelligence and expectations that the Fed could cut rates later this year.
“[T]he big focus was on tech, as companies in the industry nearly across the board reported robust results and issued favorable guidance,” analysts at Vital Knowledge said in a note.
Supported by relative economic resilience despite geopolitical and trade uncertainty, the S&P 500 has added roughly 1,000 points since November 2024.
Fed leaves policy unchanged
The Federal Reserve kept its benchmark rate steady in the 3.5%–3.75% range on Wednesday, in line with expectations, citing solid economic conditions and signs of stabilization in the labor market. Most members of the 12-person policy committee favored holding rates, although Stephen Miran and Christopher Waller both backed a quarter-point cut.
Fed Chair Jerome Powell, under renewed political scrutiny, avoided commenting further on a Justice Department investigation during his press conference and instead emphasized economic strength. He suggested that the inflationary effects of President Trump’s tariffs could fade over time, adding that while a rate hike was not completely ruled out, it “isn’t anybody’s base case right now.”
Analysts at ING said the Fed’s more positive growth assessment implies that the easing cycle seen last year is likely nearing its end. Despite this tone, the U.S. dollar continued to weaken this week against a basket of major currencies.
Meta and Microsoft highlight AI push
Artificial intelligence spending remained a dominant theme in earnings from Meta and Microsoft. Both companies signaled they would continue pouring capital into AI infrastructure such as data centers and advanced chips, even as investors increasingly look for tangible returns on these investments.
Meta said capital expenditure could climb to as much as $135bn this year, far above expectations and nearly double 2025 levels. The announcement came alongside record fourth-quarter revenue, helping lift Meta’s shares in extended trading.
Microsoft’s shares fell after the company disclosed higher-than-expected AI-related spending and slightly slower growth in its Azure cloud business compared with the previous quarter. Attention now turns to additional tech earnings, including results from Apple later Thursday.
Tesla backs xAI
Tesla also reported results on Wednesday, beating Wall Street expectations and reinforcing its strategic shift toward artificial intelligence. Shares rose 2.7% after-hours after the company posted adjusted earnings of $0.50 per share on revenue of $24.9bn, ahead of consensus forecasts.
A key highlight was Tesla’s decision to invest $2bn in xAI, Elon Musk’s private AI startup. Management described 2025 as a turning point marked by its “transition from a hardware-centric business to a physical AI company.”
While automotive revenue fell 11% year on year, Tesla’s energy storage business achieved record deployments of 14.2 gigawatt-hours. Facing growing competition and having slipped behind China’s BYD in global EV rankings, Tesla has increasingly emphasized AI and robotics as future growth drivers.
Gold extends record run
Gold prices surged to a fresh all-time high near $5,600 an ounce on Thursday, extending a powerful rally amid reports that President Trump was considering renewed military action against Iran. Silver also hit a record above $119 an ounce, reflecting strong demand for safe-haven assets.
The rally in precious metals has been underpinned by heightened geopolitical tensions, a weaker dollar and uncertainty around U.S. policy, with copper also reaching record levels.
“Gold is no longer just a crisis hedge or an inflation hedge; it is increasingly viewed as a neutral, and a reliable store of value asset that also provides diversification across a wider range of macro regimes,” OCBC analysts said in a note.
“This helps explain why pullbacks have tended to be shallow and well-supported,” they added.