US stocks were poised to resume their rally on Thursday, as upbeat Meta (META) results put earnings center stage again after the Federal Reserve boosted hopes for a September rate cut.
Futures on the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) were both up roughly 0.4%, after the indexes closed with hefty gains. Dow Jones Industrial Average futures (YM=F) edged up 0.1%.
Stocks are on the rise after Fed chair Jerome Powell bolstered the market’s confidence in a September interest-rate cut, saying it “could be on the table.” Traders mostly expect a 25-basis-point reduction, but bumped up bets on a 50-basis-point move after policymakers held rates steady.
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The focus is now on quarterly results, especially from Big Tech names, after Meta’s strong report late Wednesday. Shares in the Facebook owner climbed over 7% in pre-market trading as the market appraised its earnings beat and signs that solid digital ad revenue will give its AI investments time to pay off.
Earnings from Apple (AAPL) and Amazon (AMZN) due after the bell could test the Meta-driven bullishness for techs. They will also test the chances the AI trade can deliver on its promise, which took a hit from earlier disappointing “Magnificent Seven” earnings.
Also ahead, an update on weekly jobless claims will pave the way for Friday’s release of the July jobs report, watched closely for further evidence of the cooling labor market crucial to Fed policy.
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
