- Stock market futures surged Thursday, with S&P 500 futures up 1.15% to 5,651.00 and Nasdaq 100 futures rising 1.76% to 20,004.25, driven by strong quarterly results from Meta Platforms (up 6.51% to $584.73 premarket) and Microsoft (up nearly 9% to $429.42), easing concerns about AI spending amid economic challenges.
The stock market displayed a dynamic interplay of resilience and uncertainty as futures surged early Thursday, driven by robust quarterly performances from Meta Platforms (META) and Microsoft (MSFT), which alleviated fears of a slowdown in artificial intelligence investment despite broader economic challenges. S&P 500 futures rose 64 points, or 1.15%, to 5,651.00, while Nasdaq 100 futures climbed 345 points, or 1.76%, to 20,004.25. Dow Jones Industrial Average futures added 296 points, or 0.73%, to 41,066.00, reflecting cautious optimism among investors.
In premarket trading, Meta Platforms surged 6.51% to $584.73 after reporting stronger-than-expected first-quarter revenue, signaling sustained momentum in its digital advertising and AI-driven initiatives. Microsoft, bolstered by exceeding top- and bottom-line expectations in its fiscal third quarter, jumped nearly 9% to $429.42. The company’s Azure cloud business, a critical component of its AI infrastructure, delivered standout results alongside optimistic forward guidance, reinforcing confidence in Big Tech’s capacity to navigate economic headwinds. These gains underscored the market’s reliance on technology giants to counterbalance macroeconomic concerns, particularly as the broader economy grappled with signs of fragility.
The Commerce Department’s report of a 0.3% annualized decline in gross domestic product for the first quarter, the first negative growth since Q1 2022, had initially rattled investors on Wednesday. Economists surveyed by Dow Jones had anticipated a 0.4% gain, making the contraction a stark signal of economic slowdown. This critical data point highlighted vulnerabilities in the U.S. economy, contributing to Wednesday’s volatile session where the S&P 500 dipped over 2% and the Dow fell nearly 800 points at their lows before staging a late recovery.
Despite the economic turbulence, the market’s Wednesday rebound showcased investor willingness to look beyond short-term data disappointments. The S&P 500 (^GSPC) and Dow (^DJI) ended the session in positive territory, a testament to selective buying in sectors like technology. However, the month of April proved challenging, with the S&P 500 and Dow declining 0.8% and 3.2%, respectively, while the Nasdaq Composite (^IXIC) eked out a 0.9% gain. The S&P 500’s brief descent into bear market territory -falling more than 20% from its February record high – was triggered by President Donald Trump’s April 2 announcement of “reciprocal” tariffs, though subsequent suspension of the highest levies spurred a partial recovery. By Wednesday’s close, the S&P 500 remained approximately 9% below its record high, reflecting lingering caution.
General Motors (GM) added to the complex market narrative, as its shares rose nearly 4% to $46.97 in premarket trading despite lowering its 2025 earnings guidance. The automaker projected adjusted earnings before interest and taxes of $10 billion to $12.5 billion, incorporating a $4 billion to $5 billion impact from Trump’s auto tariffs. This marked a significant reduction from its prior guidance of $13.7 billion to $15.7 billion, which had not accounted for tariff exposure. The adjustment underscored the tangible effects of trade policy uncertainty on industrial sectors, even as GM’s stock benefited from broader market momentum.
Tesla (TSLA) shares edged up to $282.78 in premarket trading after company officials refuted a Wall Street Journal report suggesting its board was seeking a new chief executive to replace Elon Musk. The denial provided a measure of stability for the electric vehicle maker, which has faced scrutiny over its leadership and strategic direction amid a competitive market.
As investors look ahead, attention is firmly fixed on Thursday’s earnings reports from Apple (AAPL) and Amazon (AMZN), which are expected to provide further insight into the technology sector’s resilience. Economic data releases, including weekly jobless claims and a U.S. manufacturing sector update, will also shape market sentiment, with Friday’s nonfarm payrolls report looming as a critical gauge of labor market health. The interplay of corporate earnings, economic indicators, and policy developments continues to drive market dynamics, with technology stocks serving as both a buffer against uncertainty and a barometer of investor confidence in the face of economic challenges.
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