U.S. markets pointed slightly higher early Thursday on mixed results from Big Tech, one day after the Federal Reserve's kept its key interest rate unchanged as expected.
Futures the S&P 500 and Nasdaq each ticked up 0.2% before the bell Thursday, while Dow Jones Industrial futures rose 0.1%.
Fed Chair Jerome Powell said that the outlook for the U.S. economy has “clearly improved” and that the labor market stabilized since the Fed's last meeting.
The
Fed cut rates three times in a row to close out 2025 in an attempt to shore up the job market. However, inflation remains stubbornly above the central bank's 2% target, complicating the Fed's dual mandate of stable prices and full employment.
Lower interest rates can exacerbate inflation while giving the economy a boost. Lower rates could also further undercut the U.S. dollar’s value, which would help U.S. exporters. Trump has been pushing aggressively for lower rates.
Powell said interest rates look to be “in a good place” for now.
Three of the “Magnificent 7” tech giants reported mixed results after the bell on Wednesday. Meta shares jumped 8.8% after the company behind Facebook and Instagram cruised past Wall Street's sales and profit goals.
Tesla rose 2.2% after the Elon Musk-led electric automaker's annual profit plunged to its lowest level since the pandemic five years ago. Musk has been urging investors to focus less on car sales and more on the company's robotaxis and robots.
Musk said Tesla would shut down production of two older car models, S and X, in the second quarter and convert a Fremont, California, factory to produce its Optimus robots.
On the losing side was Microsoft, which also beat sales and profit expectations but apparently spooked investors because massive investments in AI have not yet paid off. Its shares slid 6.8% overnight.
Apple reports its latest results after the closing bell Thursday.
Gold pushed to new heights, jumping another 4.3% to $5,530 per ounce. Silver also rose to new records, up nearly 5% to $119.07.
France's CAC 40 rose 0.6% in early trading, while Germany's DAX shed 0.8%. Britain's FTSE 100 added 0.8%.
In Asia, gains for some technology companies reporting strong earnings failed to give shares in Tokyo much of a lift as the Nikkei 225 rose less than 0.1% to 53,375.60.
Computer chip testing equipment maker Advantest surged 5.2% after it reported stronger than anticipated earnings. Some tech company shares, like Panasonic Holdings, fell, while others rose, like chips maker Kioxia Holdings Corp. and Sony Corp.
Earnings season is getting into full gear, with major Japanese companies like Toyota Motor Corp., Sony Corp. and Nintendo Co. due to report their earnings next week.
Elsewhere in Asia, South Korea's Kospi surged 1.0% to 5,221.25, hitting a fresh record as computer chipmaker SK Hynix picked up 2.4% on a strong earnings report.
Hong Kong’s Hang Seng added 0.5% to 27,968.09, while the Shanghai Composite index gained 0.2% to 4,157.98.
Australia’s S&P/ASX 200 shed nearly 0.1% to 8,927.50.
In Jakarta, the JSX sank 1.9%, following a decline after the MSCI, a U.S. provider of global equity, fixed income and real estate indices, warned about market risks in Indonesia.
In the foreign-exchange market, the U.S. dollar stabilized after Treasury Secretary Scott Bessent said in an interview on CNBC that the U.S. government is not intervening in the currency market and continues to want a “strong dollar.”
The dollar fell to 153.38 Japanese yen from 153.42 yen.
“From Washington’s side, a slightly firmer yen is convenient for domestic manufacturing concerns. From Tokyo’s side, even symbolic Fed acknowledgment buys time and credibility,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary.
The euro cost $1.1953, down slightly from $1.1955.
In energy trading, benchmark U.S. crude gained $1.49, or 2.4%, to $64.70 a barrel. Brent crude, the international standard, rose $1.48 to $68.85 a barrel.
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