Dow Jones futures declined by 0.52%, trading near 48,750 during European hours on Thursday, ahead of the US market open. The S&P 500 futures also slipped by 0.05% to around 7,160, while the Nasdaq 100 futures advanced 0.17% to approximately 27,370, reflecting a mixed pre-market performance among major US indices [1].
The uneven movement in futures was driven by a combination of mixed corporate earnings and cautious guidance from major firms. In pre-market trading, Meta Platforms dropped 8% following disappointing user growth and weaker-than-expected capital expenditures. Microsoft shares fell nearly 1.5% despite surpassing both top and bottom-line estimates and reporting a 40% increase in Azure and cloud revenue. In contrast, Alphabet surged 7% after exceeding first-quarter revenue expectations, with Google Cloud also outperforming forecasts. Amazon gained around 4% as its earnings beat estimates and cloud revenue showed strong growth [1].
In the previous regular US session on Wednesday, Wall Street closed mixed after the Federal Reserve kept interest rates unchanged but signaled a more hawkish stance due to persistent inflation concerns. The Dow Jones and S&P 500 fell by 0.57% and 0.04%, respectively, while the Nasdaq 100 edged up by 0.04% [1].
Morgan Stanley revised its outlook, now expecting no Federal Reserve rate changes through the end of the year, abandoning earlier forecasts for cuts in September and December. This adjustment reflects ongoing elevated inflation and resilient economic data. The Federal Open Market Committee (FOMC) voted 8-4 to hold rates at 3.5%–3.75%, marking the first time since October 1992 that four members dissented, with the committee noting that inflation remains elevated, partly due to rising global energy prices [1].
CONCLUSION
Dow Jones futures fell as mixed corporate earnings and a more hawkish Federal Reserve stance weighed on market sentiment. Key tech stocks showed divergent pre-market moves, and Morgan Stanley no longer expects rate cuts this year. Persistent inflation and cautious guidance from major firms are contributing to ongoing market uncertainty.