Nasdaq 100 futures rose 0.4% overnight after Amazon shares surged more than 9% on stronger-than-expected quarterly revenue, extending Wall Street's rebound from Wednesday's sharp selloff. Microsoft's earnings-driven rally added to the momentum, while the 30-year Treasury yield climbed to its highest level since 2007 amid concerns over the Fed's inflation fight.
Nasdaq 100 futures gained 0.4% in overnight trading Thursday, building on a sharp rebound across Wall Street. Dow Jones Industrial Average futures traded flat, while S&P 500 futures inched up 0.1%.
Amazon's earnings beat lifts shares after hours
Amazon shares surged more than 9% in extended trading after the company reported better-than-expected second-quarter revenue. The results, aided by strength in its cloud-computing business, reinforced investor confidence in artificial intelligence spending.
Apple's fiscal third-quarter revenue also topped expectations, helped by a 22% jump in iPhone sales. However, a shortfall in service revenue led to a 3% decline in its stock.
Microsoft's cloud growth broadens the advance
The after-hours moves followed a powerful rally during Thursday's regular session, led by Microsoft, which jumped 16% after posting stronger-than-expected Azure cloud growth. The results sparked a broad advance across AI-linked chipmakers, with the iShares Semiconductor ETF climbing more than 8%.
Wednesday's selloff still weighs on sentiment
Thursday's recovery came after a bruising session Wednesday, when the Dow plunged more than 1,100 points, its worst one-day decline since April 2025. Selling accelerated after the Federal Reserve held interest rates steady, fueling concerns that policymakers are falling behind in the fight against inflation.
Those worries rippled through the Treasury market, where the 30-year yield climbed 6 basis points Wednesday to above 5.2%, hovering near its highest level since 2007. According to Janus Henderson's Richard Bernstein, investors are recalibrating expectations for Fed rate cuts as markets reduce the "excess liquidity that has fueled speculative, momentum-driven markets."
Despite the swings, the major averages remained on track to finish the week higher. The Dow was up about 0.5% for the week heading into Friday's session. The S&P 500 had gained roughly 0.4% for the week. The Nasdaq Composite was ahead about 0.6% over the same stretch.
Source: CNBC
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