Investing.com — U.S. stock index futures soared in overnight trading Thursday after better-than-expected profits from Microsoft and Alphabet, with gains heavily skewed toward tech stocks.
Although concerns about inflation and interest rates in the United States remain, strong financial results have raised expectations that demand for artificial intelligence will continue to support high-tech corporate profits next fiscal year.
was the best performer among its peers, rising 1.2% to 17,778.75 points by 18:49 ET (22:49 GMT) and 0.8% to 5,123.25 points. The rise was even slower, with futures up 0.1% to 38,323.0 points.
Microsoft soars, Alphabet hits record high with strong first-quarter profit
Class A shares of Google's parent company, Alphabet Inc (NASDAQ:), rose about 12% in after-hours trading to a record high of about $174.70, as indicated.
The company reported better-than-expected first-quarter profits due to strong demand for its new AI products. Alphabet also announced its first-ever dividend of 20 cents per share.
Shares of Microsoft Corporation (NASDAQ:) rose 4.6% to $417.24, driven in part by strong demand for its AI products and the company's better-than-expected first-quarter profit.
Both stocks rebounded from Thursday's bearish market and also helped fuel gains across the tech sector.
AI darling NVIDIA Corporation (NASDAQ:) added 2.4%, extending its recent rally even as recent earnings from other chipmakers raised questions about how well the AI industry will support chip demand. did.
Facebook owner Meta Platforms, Inc. (NASDAQ:) showed some relief in aftermarket trading, rising 0.7% after falling 10% during the session. Meta's profits beat expectations, but its revenue outlook was disappointing as the company incurred more costs related to AI.
remove ads
.
Wall Street Nurse Losses, PCE Data Await Further Interest Rate Clues
Wall Street indexes closed lower on Thursday after softer-than-expected data showed the economy is cooling to some extent amid high interest rates and persistent inflation.
However, , a measure of overall inflation, was higher than expected for the quarter. This added to already widespread concerns that the Federal Reserve would continue to raise interest rates for an extended period of time to curb persistently high inflation.
The GDP statistics will focus on future statistics to be released later on Friday. PCE data is the Fed's preferred inflation measure and is likely to take into account the central bank's stance on inflation.
It fell 0.5% on Thursday to 5,048.42 points and closed 0.6% lower at 15,611.76 points. The index most affected by inflation concerns fell nearly 1% to 38,085.89 points.
Despite some respite this week, Wall Street indexes are still holding on to a weak start to the second quarter as traders steadily price in expectations for an early rate cut from the Fed.
This was weighed down by the fact that some financial results reports were also mixed.
Snap soars on strong earnings, Intel falls
shares of Snap Co., Ltd. (NYSE:) rose more than 25% in aftermarket trading after the social media company reported better-than-expected first-quarter profits and also offered a positive outlook.
Other social media stocks also rose after the U.S. pushed ahead with legislation that would give video streaming app TikTok a one-year moratorium to sell itself or exit the U.S. market.
remove ads
.
Meanwhile, Intel Corporation (NASDAQ:) fell 8% in aftermarket trading after the semiconductor maker reported disappointing quarterly results and gave a moderate outlook for the second quarter.
