Investing.com – U.S. stock index futures rose sharply in after-hours trading on Thursday, with gains largely skewed toward technology stocks following stronger-than-expected earnings from Microsoft and Alphabet.
While caution remains over U.S. inflation and interest rates, positive earnings have fueled hopes that demand for artificial intelligence will continue to support earnings from tech companies in the next quarter.
were the best performers among their peers, rising 1.2% to 17,778.75, and were up 0.8% at 5,123.25 by 6:49 pm ET (2249 GMT). Growth was much more subdued, with futures up 0.1% to 38,323.0.
Microsoft grows, Alphabet hits record high on strong first-quarter earnings
Class A shares of Google parent Alphabet Inc (NASDAQ:) rose about 12% in after-hours trading, hitting an all-time high of $174.70.
The firm recorded better-than-expected revenue in the first quarter thanks to strong demand for its new artificial intelligence offerings. Alphabet also announced its first dividend of 20 cents per share.
Microsoft Corporation (NASDAQ:) shares rose 4.6% to $417.24 as strong demand for artificial intelligence products also helped the company post better-than-expected first-quarter earnings.
Both stocks rebounded from Thursday’s negative session and also contributed to gains in the technology sector.
Shares of artificial intelligence darling NVIDIA (NASDAQ:) added 2.4%, extending a recent rebound even as recent earnings from other chip makers raised doubts about how much the AI industry will support demand for chips.
Facebook owner Meta Platforms Inc (NASDAQ:) saw some improvement in aftermarket trading, rising 0.7% after falling 10% for the session. Meta’s earnings beat expectations, but its revenue outlook disappointed as the company took on more AI-related expenses.
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Wall Street suffers losses, awaits PCE data for more rate signals
Wall Street indexes closed lower on Thursday after softer-than-expected data pointed to some cooling in the economy amid high interest rates and persistent inflation.
But the inflation index, a measure of overall inflation, was higher than expected for the quarter. That added to already widespread fears that the Federal Reserve will keep interest rates high for longer to curb persistent inflation.
The GDP data drew attention to upcoming data due later on Friday. The PCE data is the Federal Reserve’s preferred measure of inflation and will likely feed into the central bank’s stance on inflation.
On Thursday, the index fell 0.5% to 5,048.42 points and closed down 0.6% to 15,611.76 points. The market suffered the most from inflationary fluctuations, falling by almost 1% to 38,085.89 points.
Despite some respite this week, Wall Street indexes still had a weak start to the second quarter as traders gradually shrugged off expectations that the Federal Reserve will cut interest rates soon.
Some mixed earnings reports were also significant.
Snap grows amid strong earnings, Intel falls
Shares snap inc. (NYSE:) rose more than 25% in the aftermarket after the social media company reported better-than-expected first-quarter earnings and offered upbeat guidance.
Shares of other social media companies also rose after the US pushed forward a bill that would have given video streaming app TikTok a year to either sell itself or leave US markets.
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On the other hand, shares of Intel Corp. (NASDAQ:) fell 8% in the aftermarket after the chipmaker reported disappointing quarterly earnings and offered middling guidance for the second quarter.