US equity futures rebounded solidly on Thursday, recouping part of the prior session’s losses on the back of a fresh round of corporate earnings. S&P 500 and Dow Jones futures were both up more than 0.5%, while Nasdaq 100 futures advanced 1.5%.
Microsoft jumped nearly 10% in premarket trading after reporting a 43% increase in Azure revenue, its strongest growth since 2022 and ahead of consensus forecasts. That performance, together with capital expenditure guidance that did not overshoot expectations, helped ease worries about an unsustainable pace of AI-related investment. The news also provided some relief to chipmakers following yesterday’s sharp selloff, with Micron and SanDisk each gaining about 3%.
In contrast, Meta shares slumped 10% after the company’s outlook fell short of expectations. Investors also remained doubtful that its AI initiatives will translate into revenue growth at the scale suggested by the company, despite its positioning as a major hyperscaler.
At the same time, long-dated Treasury yields held near recent highs. Comments from Fed Chair Warsh, who stopped short of signaling that the Federal Reserve is prepared to raise rates, stoked concerns that inflation may remain elevated for longer than previously anticipated.
