dailyloe.com – S&P 500 futures declined early Thursday after quarterly earnings reports from major technology companies. Futures linked to the S&P 500 lost 0.22%, while Nasdaq 100 futures fell by 0.23%. Dow Jones Industrial Average futures decreased by 285 points, equivalent to a 0.58% drop.
During the regular trading session, the Dow lost 280.12 points, or 0.57%, marking its fifth consecutive day of losses. The broader S&P 500 saw a slight decline of 0.04%, while the Nasdaq Composite managed a minimal gain of 0.04%. Shares of Meta, part of the “Magnificent Seven,” fell by 7% following disappointing earnings.
Meta’s capital expenditures for the first quarter were below expectations, and user growth did not meet forecasts. Microsoft’s shares remained stable after it reported better-than-expected earnings for the third quarter, including a 40% revenue surge from Azure and other cloud services. Alphabet and Amazon also released their earnings after the market closed on Wednesday.
Alphabet’s shares rose by 7% after it reported a revenue beat in the first quarter, with Google Cloud revenue exceeding expectations. Amazon saw a 3% increase in its shares following better-than-expected first-quarter results and a surge in cloud computing revenue. Meanwhile, oil prices increased on Wednesday amid ongoing tensions between the United States and Iran.
The Wall Street Journal reported that President Donald Trump instructed aides to prepare for a prolonged blockade of Iran. This news contributed to rising oil prices, especially after Axios stated that Trump rejected Iran’s proposal to reopen the Strait of Hormuz, insisting that the U.S. naval blockade would remain until a deal addressing concerns about Iran’s nuclear program is reached.
On Wednesday, the Federal Reserve voted to maintain interest rates in the range of 3.5% to 3.75%, a decision anticipated by investors. The 8-4 vote marked the first dissent from four Fed officials since 1992. The upcoming April policy meeting may be Fed Chair Jerome Powell’s last before his term concludes next month.
Kevin Warsh, nominated by Trump to succeed Powell, is expected to take over at the Federal Reserve. Sonu Varghese, a global macro strategist with Carson Group, noted that increasing obstacles to cutting rates are emerging. He stated, “The Fed held rates unchanged and we expect that to continue for the rest of this year.”
