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Stock futures rise as Microsoft rallies after earnings, day after Fed holds rates steady

Equity markets positioned to recover from Wednesday's post-Fed sell-off as investors digest quarterly results from the software giant
WHY IT MOVED
The rebound suggests traders are separating company-specific earnings strength from the central bank policy backdrop that drove Wednesday's decline.
AT PUBLICATION
MSFT390.54▼ -0.71%
Measured when this story was written, not live.
BREAKING MSFT Federal Reserve Big Tech & AI Earnings & guidance InstantWhy Newsroom 1h ago

The numbers

CNBC reports stock futures rose Thursday morning, lifted by a jump in Microsoft shares following the company's quarterly earnings release. The advance comes one day after the Federal Reserve held interest rates unchanged and equity markets sold off. Investors are working through a wave of results from the largest technology companies by market capitalisation.

Why it matters

Microsoft's results are the first major test of whether Big Tech can deliver growth that justifies valuations even as the Fed keeps borrowing costs elevated. The four largest technology companies by market value are all reporting in the same week as the Fed decision, concentrating both the policy risk and the earnings catalyst into a narrow window.

How this compares

Stock futures fell on July 28 ahead of the Fed decision as investors braced for both the policy announcement and a packed slate of technology earnings. The central bank was widely expected to pause after its previous moves, but markets have been volatile around recent Fed meetings as traders parse the statement and press conference for signals on the path ahead. Amazon, Apple and Meta are also scheduled to report results this week alongside Microsoft.

What to watch

The remaining Big Tech earnings will determine whether the futures rally extends into a sustained recovery or fades if results disappoint. Traders will continue to assess whether the Fed's decision to hold rates signals a prolonged pause or a brief stop before further moves.

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HOW THIS STORY WAS MADE

Sources

Artificially generated from public sources, explained in our own words, and published as fast as possible. Our team holds editorial responsibility. This is analysis, not investment advice.

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