U.S. stock futures are pointing to a stronger start on Thursday, suggesting markets could move higher after finishing the previous session with little overall direction.
Early momentum appears driven by a positive market reaction to the latest earnings releases from major technology companies.
Shares of Alphabet (NASDAQ:GOOGL) are soaring 7.1% in premarket trading after the Google parent reported first-quarter revenue above expectations.
E-commerce giant Amazon (NASDAQ:AMZN) is also climbing 3.7% ahead of the open after delivering quarterly results that topped analyst forecasts.
Qualcomm (NASDAQ:QCOM) is seeing notable premarket gains as well, following better-than-expected fiscal second-quarter earnings.
In contrast, shares of Meta Platforms (NASDAQ:META) are dropping 7.8% in premarket trading. While the company beat expectations for the quarter, its increased capital spending outlook weighed on investor sentiment.
A decline in oil prices is also supporting early gains on Wall Street, with U.S. crude futures falling more than 1% despite ongoing concerns tied to the Middle East conflict.
Markets ended previous session mixed
After Tuesday’s pullback, Wednesday’s session saw stocks move without clear direction. Both the Nasdaq and the S&P 500 fluctuated around the unchanged line before closing mixed.
The tech-heavy Nasdaq edged up 9.44 points, or less than 0.1%, to 24,673.24, while the S&P 500 slipped 2.85 points, also less than 0.1%, to 7,135.95.
Meanwhile, the Dow Jones Industrial Average declined more noticeably, falling 280.12 points, or 0.6%, to 48,861.81, pressured by sharp losses in Boeing (NYSE:BA), IBM (NYSE:IBM) and Travelers (NYSE:TRV).
Investors cautious ahead of key catalysts
The subdued performance reflected investor caution ahead of major earnings announcements from large-cap technology companies.
Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) were among the firms reporting results after the close.
Market participants were also focused on the latest policy decision from the Federal Reserve, which kept interest rates unchanged in a closely divided vote.
The Fed maintained its target range for the federal funds rate at 3.50% to 3.75%, citing its dual mandate of maximum employment and stable inflation around 2% over the long term.
Beth Hammack, Neel Kashkari and Lorie Logan supported holding rates steady but “did not support inclusion of an easing bias in the statement at this time.”
The trio reportedly objected to language referencing “additional adjustments to the target range,” given that the Fed’s most recent actions have been rate cuts.
Sector moves show divergence
Despite the broader market’s muted tone, some sectors posted strong gains. Networking stocks led the advance, with the NYSE Arca Networking Index jumping 4.8% to a record close.
Energy shares also rallied alongside oil prices, pushing the NYSE Arca Oil Index up 3.2%.
Semiconductor, computer hardware and oil services stocks showed solid gains as well, while gold, airline and steel stocks moved lower during the session.