US stock futures traded higher in Thursday’s session as strength in select technology heavyweights supported Wall Street, even as tensions in the Middle East remained elevated.
S&P 500 futures gained 0.5%, while Dow Jones Industrial Average futures rose 140 points, or 0.3%. Nasdaq 100 futures advanced 1.1% after the index slipped into technical correction territory.
Among individual stocks, Microsoft surged 10% in premarket trading after its cloud business posted its fastest growth in four years and the company maintained its spending guidance.
In contrast, Meta Platforms fell 10% in premarket trade after the social media giant missed investor expectations on earnings and issued weaker-than-expected revenue guidance for the current quarter. The stock had already declined in extended trading on Wednesday and is now down around 16% so far this year.
The rebound in today’s trade follows the previous session’s sharp sell-off after the US Federal Reserve left benchmark interest rates unchanged for the fifth consecutive meeting. Three of the 12 policymakers dissented from the majority decision, calling for a 25-basis-point rate hike.
The central bank reiterated that the committee remains committed to restoring price stability but did not provide further details on how or when it would intervene.
Investor attention now turns to Thursday’s release of the Fed’s preferred inflation gauge. June’s monthly Personal Consumption Expenditures (PCE) inflation reading is expected to turn negative, largely due to lower energy prices, while the annual core reading is projected to remain well above the Fed’s 2% target. Markets will also receive fresh data on US economic activity and consumer spending.
Meanwhile, in the UK, the Bank of England kept its benchmark interest rate unchanged at 3.75%, with three of the nine policymakers voting in favour of a 25-basis-point rate hike. While the decision was widely expected, markets remain almost evenly split over the September policy meeting.
Middle East tensions remain elevated
Meanwhile, tensions in West Asia escalated after US forces reportedly carried out fresh strikes on Iran in response to attacks on American forces across the Middle East. In response, Iran’s Islamic Revolutionary Guard Corps (IRGC) threatened further escalation.
The latest strikes came hours after US President Donald Trump vowed to hit Iran “very hard” following attacks on a military base in Jordan hosting US troops.
Oil pares gains after sharp rally
Crude oil prices retreated from their intraday highs, with Brent crude falling 1.2% to $89.66 a barrel after briefly climbing above $93. Meanwhile, WTI crude erased all of its earlier gains, slipping to $83.12 a barrel from the day’s high of $85.94.
In the previous session, oil prices snapped a three-day losing streak, rising 8%, after Iran launched attacks on US forces stationed across the Middle East, reigniting fears of supply disruptions.
The renewed fighting followed several days of diplomatic efforts, during which mediators had reported progress towards ending the conflict that began on 28 February with US and Israeli strikes on Iran.
(With inputs from Bloomberg)
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