Stock market futures rose early Thursday after strong quarterly results from two Big Tech players eased concerns that artificial intelligence spending would slow amid economic turmoil.
S&P 500 futures jumped 1.2%, while Nasdaq 100 futures gained 1.8%. Futures tied to the Dow Jones Industrial Average climbed 319 points, or 0.8%.
In premarket trading, Meta Platforms advanced 6% on stronger-than-expected revenue in the first quarter. Microsoft jumped more than 8%, powered by top- and bottom-line beats in the fiscal third quarter, as well as strong results from its Azure cloud business and upbeat guidance.
Also before the opening bell, General Motors cut its 2025 forecast amid worries over President Donald Trump’s tariffs, seeing a tariff-related impact of at least $4 billion. Shares were up nearly 3% in the premarket.
Shares of Tesla traded 0.6% higher after company officials denied reports that its board has opened a search for a chief executive to succeed Elon Musk.
In the previous session on Wednesday, the S&P 500 and the 30-stock Dow posted gains in volatile trading, coming back from earlier losses. At the day’s lows, the broad market index was down more than 2%, while the blue-chip Dow lost more than 780 points.
Traders were initially shaken by weak economic data from the Commerce Department, showing that gross domestic product fell at an annualized pace of 0.3%. It marked the first quarter of negative growth since Q1 of 2022. Economists polled by Dow Jones had forecast a 0.4% gain. Investors looked past the dismal results and began buying back into the market late in the session, resulting in a rebound into positive territory for the Dow and S&P 500.
Wednesday marked the final trading day in April, in which stocks were first whipsawed after President Donald Trump’s “reciprocal” tariff announcement on April 2 and the subsequent suspension of the highest levies. At one point, during the month, the S&P 500 briefly slipped intoa bear market – falling more than 20% from its February record high – before recapturing some of its losses. The broad market index wound up ending Wednesday about 9% off its record close.
Still, the comeback couldn’t save S&P 500 and the Dow from a losing April, as they slipped about 0.8% and 3.2%, respectively. The Nasdaq Composite, however, advanced 0.9% in the period.
“While market volatility may persist until more tariff certainty emerges, we think the sharpest Trump policy swings are likely behind us and that the outlook is becoming more constructive,” UBS Global Wealth Management chief investment officer Solita Marcelli wrote on Wednesday. ”[W]ith Trump’s first 100 days bringing political uncertainty, shifting trade policies, and choppy markets, we believe investors should focus on strategies that both manage and look through volatility.”
Investors now await quarterly results from Apple and Amazon in the afternoon Thursday. Meanwhile on the economic data front, weekly jobless claims data and a reading on the U.S. manufacturing sector are due out Thursday. The key nonfarm payrolls report is due on Friday.
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