Futures tied to major U.S. indices traded in mixed fashion as investors processed a wave of catalysts, including big tech earnings, a renewed surge in Brent crude prices, and a closely watched Federal Reserve rate decision. The pace of developments is expected to continue, with more earnings reports and central bank announcements ahead.
Futures show mixed direction
U.S. equity futures hovered near flat levels on Thursday as traders reacted to a series of major updates shaping market sentiment.
As of 03:35 ET, Dow futures were down 275 points, or 0.6%, S&P 500 futures slipped 6 points, or 0.1%, while Nasdaq 100 futures edged up 30 points, or 0.1%.
Wall Street’s main indices ended the previous session with mixed performance, as investors balanced solid corporate earnings with the implications of the latest Federal Reserve decision.
Big tech earnings highlight AI spending trends
After the close, several mega-cap technology companies reported quarterly results, offering further insight into the scale of artificial intelligence investment.
Alphabet (NASDAQ:GOOG) led what Deutsche Bank analysts described as a “decent set” of results from the so-called Magnificent 7.
Shares of the Google parent rose in after-hours trading, helped by stronger-than-expected cloud revenue growth. Amazon (NASDAQ:AMZN) also advanced, supported by its fastest AWS revenue growth since 2022.
Microsoft (NASDAQ:MSFT) reported cloud revenue broadly in line with expectations and signaled stronger growth in the second half of the year.
However, Meta Platforms (NASDAQ:META) declined after hours after raising its 2026 capital expenditure outlook by $20 billion to a range of $125 billion to $145 billion.
Collectively, the four companies spent a record $130.65 billion in the first quarter, primarily on expanding data center capacity for AI — a 71% increase compared to the same period last year.
Oil prices jump on geopolitical tensions
While markets assessed earnings, oil prices surged to their highest levels since the start of the Iran conflict in late February following new geopolitical developments.
According to Axios, Donald Trump is set to receive a briefing on potential new military action against Iran, as efforts continue to bring Tehran back to negotiations over its nuclear programme.
Trump also wrote on social media: “Iran can’t get their act together. They don’t know how to sign a nonnuclear deal. They better get smart soon!”
Analysts at ING said the situation has shifted market sentiment, noting: “The oil market has moved from over-optimism to the reality of the supply disruption we are seeing in the Persian Gulf.”
Fed decision reveals internal divisions
The Federal Reserve left interest rates unchanged, as widely expected, but the decision highlighted growing disagreement among policymakers — the most divided outcome since the early 1990s.
Rates remain in a range of 3.5% to 3.75%, and the Fed did not alter its policy language, which continues to suggest the next move could be a rate cut. Four members of the Federal Open Market Committee dissented.
Fed Chair Jerome Powell also announced he will remain on the central bank’s board after his term ends in May, breaking with precedent and potentially complicating the transition to Kevin Warsh.
Powell said he was concerned about “the series of legal attacks on the Fed,” adding that these “threaten our ability to conduct monetary policy without considering political factors.”
ECB and BOE decisions ahead
Attention now turns to policy decisions from the European Central Bank and the Bank of England later on Thursday.
The ECB is expected to hold its deposit rate at 2%, although Deutsche Bank analysts noted that markets are increasingly pricing in a rate hike at the June meeting due to rising energy costs.
“[S]o the question today is whether the ECB validates that view,” the Deutsche Bank analysts wrote.
Meanwhile, the Bank of England is also expected to keep rates unchanged at 3.75%, while signaling concerns over slower growth and rising inflation pressures in the broader outlook.