US Stocks-US stock futures steady as Microsoft offsets Fed concerns

At 6:18 a.m. ET, S&P 500 E-minis EScv1 were up 30.5 points, or 0.41%, Nasdaq 100 E-minis NQcv1 were up 236.25 points, or 0.86%, and Dow E-minis YMcv1 were up 119 points, or 0.23%. Among other stocks, Qualcomm QCOM.O fell 5.3%, as the chipmaker forecast fourth-quarter profit below estimates and said revenue from Apple products would decline faster than expected. U.S.-listed shares of Arm ARM.O dropped 5% after the British chip designer said it expects smartphone royalties to fall in "this next quarter". Nearly half of S&P 500 companies have reported second-quarter results so far. Of those, 85.2% have topped analysts' profit estimates, as per LSEG IBES data, compared with an average beat rate of 68%. Starbucks SBUX.O climbed 7.3% after the world's largest coffee chain raised its annual sales and profit forecasts, while Chipotle Mexican Grill CMG.N added 5% as the burrito chain raised its annual sales forecast. Investors have been spooked by rising AI costs at big technology firms even as they report strong earnings. Negative cash-flow reports from Alphabet GOOGL.O and Tesla TSLA.O last week sparked a bout of selling in AI-linked stocks, with chip stocks also coming under pressure as investors question high valuations. The tech-heavy Nasdaq .NDX dropped 10% from its early June peak on Wednesday. In a sign that AI concerns were far from over, Meta Platforms META.O dropped 9.2% after the social media giant reported a 91% drop in second-quarter free cash flow, underscoring the financial strain of its costly AI buildout. Apple AAPL.O and Amazon AMZN.O are scheduled to report earnings after markets close on Thursday. U.S. stocks fell sharply on Wednesday, with the benchmark S&P 500 .SPX posting its biggest percentage drop since June 10, after the Fed left interest rates unchanged in the 3.50%-3.75% range, but mixed messages from new Fed Chair Kevin Warsh left traders confused about the path of borrowing costs. U.S. 30-year Treasury yields jumped to 19-year highs on Thursday, while the yield on 2-year notes US2YT=RR, which reflects near-term interest rate expectations, was largely unchanged at 4.26%. US/ Traders currently see a 65% chance that the U.S. central bank will raise interest rates by 25 basis points at its September meeting, as per CME Group's FedWatch tool. Key economic data including the preliminary reading of second-quarter GDP, personal consumption expenditures for June and weekly initial jobless claims are due at 8:30 a.m. ET. The GDP report is expected to show the U.S. economy grew at a 2.1% annualized rate last quarter, matching the January-March quarter's pace, as the economy largely weathered the Middle East conflict. U.S. stock index futures steadied on Thursday after a sharp selloff driven by uncertainty around the Federal Reserve's policy outlook, while Microsoft's forecast-beating results soothed investor concerns about massive AI spending by companies. Microsoft MSFT.O rose nearly 9% in premarket trading after the company forecast current-quarter sales and cloud growth that beat expectations, gave a capital expenditure outlook below Wall Street estimates and said it expects to keep generating cash through its just-started fiscal 2027.

US Stocks-US stock futures steady as Microsoft offsets Fed concerns

Premarket moves in major stocks

AI spending concerns pressure tech and Meta

Fed outlook and Treasury yields remain in focus

Futures steady after selloff as Microsoft lifts sentiment

Related News

US Stocks: US stock futures rise as Microsoft offsets Fed concerns

Lincoln Electric Q2 sales rise 12%, beat estimates

SunCoke Energy Q2 revenue rises

NextDecade Provides Second Quarter 2026 Business Update

Canada Goose beats quarterly revenue estimates on steady demand