U.S. stock index futures were pointing modestly higher early Thursday, suggesting a positive start to the session after markets finished the previous day little changed.
Early momentum looked set to be driven by an upbeat response to earnings from Meta Platforms (NASDAQ:META), with the Facebook owner jumping 9.2% in pre-market trading. The rally followed stronger-than-expected fourth-quarter results and first-quarter revenue guidance that came in above analyst forecasts.
Other large-cap tech names also added to the positive tone. Shares of IBM Corp. (NYSE:IBM) moved sharply higher before the open after the company beat expectations on both revenue and earnings for the fourth quarter. Electric vehicle maker Tesla (NASDAQ:TSLA) also appeared poised for gains after posting better-than-anticipated quarterly results.
However, broader upside could be capped by weakness in Microsoft (NASDAQ:MSFT), whose shares fell 6.3% in pre-market trading. The decline followed signs of slowing cloud growth in the fiscal second quarter and guidance pointing to weaker-than-expected operating margins in the third quarter.
During Wednesday’s regular session, major U.S. indices struggled to hold early gains and spent much of the day hovering around flat levels before closing narrowly mixed. The S&P 500 slipped 0.57 points to 6,978.03, while the Dow edged up 12.19 points to 49,015.60. The Nasdaq gained 40.35 points, or 0.2%, to finish at 23,857.45.
Choppy trading persisted after the Federal Reserve delivered its widely anticipated decision to leave interest rates unchanged. Policymakers maintained the target range for the federal funds rate at 3.50% to 3.75% following three consecutive quarter-point cuts.
As with recent meetings, the decision was not unanimous. Governors Stephen Miran and Christopher Waller dissented, favoring another quarter-point reduction. The Fed said its choice reflected elevated uncertainty around the economic outlook and reiterated its focus on balancing risks to both employment and inflation.
“While not a unanimous vote, there does seem to be a clear and consistent majority in favor of a pause in this rate-cutting cycle, a pause that likely continues unless or until the job market weakens further,” said Mortgage Bankers Association SVP and Chief Economist Mike Fratantoni.
He added, “With inflation remaining elevated, the FOMC majority does not seem in any rush to make further rate moves.”
Market expectations tracked by CME Group suggest investors now see rates staying on hold until after Fed Chair Jerome Powell steps down in May.
With the policy outcome largely priced in, attention shifted toward earnings from major technology companies released after the close. Despite the uneven broader market, gold stocks surged alongside another rally in bullion prices, pushing the NYSE Arca Gold Bugs Index to a fresh record closing high with a 2.7% gain.
Computer hardware stocks also stood out, with the NYSE Arca Computer Hardware Index climbing 2.6% to a new closing peak, helped by a 19.1% jump in Seagate Technology after the company reported better-than-expected fiscal second-quarter results.
Semiconductor and networking shares also advanced, while oil services, pharmaceuticals and biotechnology stocks were among the day’s notable laggards.