Wall Street appeared poised for further gains on Thursday, buoyed by positive earnings from Meta, while Microsoft faced investor skepticism. The dollar remained stable against most currencies after the Federal Reserve opted to keep the interest rates steady.
In contrast to this, the yen gained strength across the board, fueled by increasing expectations that the Bank of Japan will continue its interest rate hikes diverging from the trend of other central banks that are cutting rates.
On Thursday, the European Central Bank followed through with anticipated interest rate cuts, focusing the inflation in the eurozone increasingly under control. Despite lingering worries about global trade, which left the Euro slightly weaker for the day.
Meanwhile, the U.S. central bank maintained its rates on Wednesday, aligning with market expectations. Fed Chair Jerome Powell indicated that there would be no immediate moves to reduce lower rates again.
The policies of President Donald Trump continue to pose a risk for the outlook of the Fed, with the new tariffs likely to be imposed on Canada, Mexico as well as China this Saturday.
U.S. stock index futures have climbed by 0.5 – 0.8%, highlighting a positive opening for the tech-heavy Nasdaq, which dipped on Wednesday, mirroring the S&P 500’s performance.
The initial earnings reports from the so-called seven tech giants presented a mixed picture. Microsoft exceeded quarterly revenue forecasts, while Tesla’s profit margin for the fourth quarter fell short of expectations.
These earnings did little to clarify the ongoing debate which is related to the potential challenge posed by the Chinese startup DeepSeek.
Meta has projected its first-quarter revenue below market predictions, with Apple ready to announce its results on Thursday. Jacob Falconcrone, chief investment strategist for Europe for Saxo remarked, “Microsoft, Tesla, and Meta are all heavily investing in AI, but investors are now looking for tangible outcomes.”
Business Journalist
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