Market News

Stock Futures Rise on Strong Mega-Cap Earnings

U.S. stock futures moved higher in the early hours of Thursday morning, buoyed by strong earnings reported by Meta (FB) after the markets closed on Wednesday. The U.S. is in the thick of the earnings season, and market watchers seem to be taking a break from worrying about the Federal Reserve’s impending interest rate hikes.

Futures on the Dow Jones Industrial Average (DJIA) were up 1%, while those on the S&P 500 (SPX) moved 1.62% higher as of 4.33 a.m. EST, Wednesday. Meanwhile, the Nasdaq 100 (NDX) futures surged 2.3%.

Despite missing revenue expectations, Meta’s earnings beat sent FB stock more than 18% higher after hours. The extended trading session also saw a 5.6% rally in the Qualcomm (QCOM) stock and a 5% gain in PayPal (PYPL) shares following strong quarterly reports despite the latter’s tepid Q2 guidance.

By Wednesday’s close, the Nasdaq 100 ended relatively flat, losing just 0.05%. The other two major indexes, however, ended modestly in the green, with the Dow gaining 0.19%, while the S&P 500 rose 0.21%.

SoFi Technology (SOFI) spokesperson Liz Young made an interesting observation about the markets. “I think a lot of people want to believe that earnings are going to pull us out of this, but earnings are not what got us into this,” said Young on CNBC’s “Closing Bell: Overtime” on Wednesday. Young sees many macroeconomic headwinds ahead in the next 60 days.

Meanwhile, as the Russia-Ukraine war rages on, tension between Russia and the West is also escalating. Russia reportedly stopped deliveries of gas to Poland and Bulgaria after the countries refused to pay for the gas in Russian rubles. This hostility is adding to the anxiety of stock market participants.

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