Meta Platforms and Microsoft exceeded expectations with their latest earnings reports, while Tesla fell short. Despite these mixed results, U.S. stock futures remained relatively unchanged on Wednesday night. The day saw all three major averages end the session lower, reflecting a cautious market environment.
Meta Platforms experienced a nearly 2% increase in its share value during extended trading, while Tesla saw a robust nearly 5% gain despite missing earnings expectations. In contrast, Microsoft shares dipped by 4%, as concerns over AI spending and the U.S.'s position in the technology space emerged following the earnings announcement.
The broader market sentiment reflects anticipation, with several companies from the "Magnificent Seven" poised to report their earnings in the coming days. Notably, Apple is set to release its results on Thursday, with Amazon following suit next week. The focus will also be on Nvidia, whose shares have declined by 13% this week due to competition from Chinese AI startup DeepSeek.
In monetary policy news, the Federal Reserve has paused its interest rate-cutting campaign, maintaining its borrowing rate within the range of 4.25% to 4.5%. Investors are keenly awaiting Friday's personal consumption expenditures price index report for December, which will provide further insights into inflation trends.
"The implication is that we're on hold until the inflation rate goes down, and unfortunately it's probably not going to go down very much in the several months ahead, so I wouldn't be looking for rate cuts at the next meeting." – Jeffrey Gundlach, DoubleLine Capital CEO
Adding to the economic outlook, Thursday's schedule will reveal the fourth-quarter gross domestic product reading and weekly jobless claims. These reports are expected to offer a clearer picture of the economic landscape as investors navigate through a complex market environment.
Nasdaq 100 futures saw a modest rise of 0.1%, indicating a cautious but optimistic approach from investors. As they digest these earnings and economic indicators, market participants remain alert to further developments in both corporate performance and macroeconomic conditions.