Dow futures rebound after Fed-inspired losses; tech earnings in spotlight By

© Reuters — U.S. stock futures rose Thursday, rebounding after the previous session’s sharp losses following the latest Federal Reserve meeting ahead of the release of more mega cap earnings. 

By 06:55 ET (11:55 GMT), the contract was up 45 points, or 0.1%, traded 16 points, or 0.3%, higher and climbed 95 points, or 0.6%.

The main U.S. averages closed lower Wednesday after Fed Chair Jerome Powell dented expectations for a March interest rate cut at his post decision press conference.

The blue chip closed over 300 points, or 0.8%, lower, its worst day since December. The broad-based slid 1.6%,  while the tech-heavy dropped 2.2%, its worst session since October.

Fed reins in early rate cut hopes 

The kept interest rates on hold at more than two-decade highs on Wednesday, as widely expected, but Chair prompted a hefty selloff after he reined in hopes that the central bank would soon start to cut interest rates.

In a press conference on Wednesday, Powell noted that a reduction as soon as March was not his “base case” despite growing signs of cooling inflation.

Goldman Sachs pushed back its expectation of the Fed starting interest rate cuts to May from March, while maintaining its forecast of five 25 basis points rate cuts this year.

The influential investment bank expects four consecutive cuts starting in May through September and a final cut in December.

There’s more labor market data to study later in the session, in the shape of weekly , ahead of Friday’s key monthly report.

Amazon, Apple and Meta set to report

Also hitting sentiment on Wednesday was weakness in Microsoft (NASDAQ:) and Google-parent Alphabet (NASDAQ:), as the both tech giants warned of rising costs needed to build out their artificial intelligence capabilities.

There are more mega-cap tech stocks set to report Thursday, in the form of Amazon (NASDAQ:), Apple (NASDAQ:) and Facebook-owner Meta Platforms (NASDAQ:) after the closing bell on Thursday.

Merck (NYSE:), Peloton Interactive (NASDAQ:) and Royal Caribbean (NYSE:) are set to report their latest results before the open. 

Elsewhere, Qualcomm (NASDAQ:) reported a fiscal second-quarter profit that topped Wall Street estimates, although investors were concerned that the San Diego-based AI chipmaker is losing crucial market share in China. 

Crude rises on increased Middle East tensions

Oil prices rose Thursday, helped by the elevated tensions in the Middle East but amid caution with OPEC+ meeting.

By 06:55 ET, the futures traded 0.9% higher at $76.50 a barrel, while the contract climbed 0.8% to $81.22 a barrel.

The Organization of Petroleum Exporting Countries and allies, known as OPEC+, is holding a meeting of the Joint Ministerial Monitoring Committee, its first major meeting of 2024, but Reuters reported that production policy changes are off the agenda.

Additionally, fell 0.8% to $2,050.45/oz, while traded 0.1% lower at 1.0809.


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