Dow Jones futures edge higher ahead of inflation data
Dow Jones futures advanced about 0.2% Thursday morning as U.S. stock futures rebounded after Wednesday's Fed-fueled sell-off. S&P 500 and Nasdaq contracts also rose ahead of June PCE inflation data, while traders weighed a bond rout, AI spending worries, and fresh U.S. strikes on Iran overnight.
Contracts on the S&P 500 rose 0.4%, while Nasdaq-100 futures jumped 0.7% after the tech-heavy index slipped into a correction on Wednesday. Investors remained on guard amid higher long-term yields and more Big Tech earnings still to come. For more market and wealth coverage, visit our Net Worth & Wealth hub.
Key Takeaways
- Dow Jones futures were up roughly 0.2% in Thursday premarket trading.
- S&P 500 futures gained 0.4% and Nasdaq-100 futures rose 0.7% after a correction day.
- Microsoft jumped nearly 9% in premarket while Meta fell over 9% after earnings.
- June PCE inflation data, continuing claims, and second-quarter GDP are due Thursday.
- The 30-year Treasury yield neared a multidecade high around 5.24% as bonds sold off.
Why are Dow Jones futures rising today?
According to Yahoo Finance, U.S. stock futures staged a comeback Thursday as Asian markets rebounded and more corporate earnings hit the calendar. The rebound followed a Federal Reserve decision Wednesday to hold interest rates steady, which helped fuel the prior day's sell-off.
Even so, the tone stayed cautious. Traders digested a sharp move in long-term yields, with the 30-year Treasury yield near 5.24%. Oil prices were flat Thursday morning, but fresh U.S. attacks on a dozen Iranian targets overnight raised the risk of another escalation that could rekindle inflation pressures.
How did Meta and Microsoft earnings split Big Tech?
The fortunes of two Magnificent Seven names diverged after Wednesday afternoon results. Meta shares fell over 9% in premarket trading after an earnings miss deepened worries about recovering AI investments. Microsoft stock jumped nearly 9% after its Azure cloud business topped $100 billion in revenue for the first time.
CNBC reported Microsoft shares about 9% higher and Meta down 9% in premarket. Microsoft posted fiscal fourth-quarter revenue that beat estimates and said Azure grew 43%. The company also reported more than 30 million paid seats for Microsoft 365 Copilot, up from more than 20 million in April.
Meta guided current-quarter revenue to $61 billion to $64 billion, below the $63.15 billion analysts expected, per LSEG. Free cash flow plunged 91% year on year to $784 million as AI spending continued. Amazon reports after the bell, with Apple also due and margins in focus amid memory chip price hikes.
What economic data could move markets next?
Thursday's highlight is the Personal Consumption Expenditures index for June, the Fed's preferred inflation gauge. Continuing claims and a reading on second-quarter GDP are also scheduled. Those releases matter because investors are still pricing how sticky inflation and higher long-term yields could keep policy restrictive.
Geopolitics adds another layer. Overnight strikes on Iranian targets threatened further Middle East escalation even as oil traded flat. Combined with the AI-spend debate highlighted by Meta and Microsoft, the session may hinge on whether stronger futures hold once cash markets open and the data hits.
For investors tracking indexes, megacap earnings, and inflation prints, Dow Jones futures offer an early read on risk appetite—but confirmation still comes from the open and the PCE report.