According to CNBC, Nasdaq 100 futures rose 0.4% on Wednesday night following key tech earnings and a Federal Reserve decision. Meta Platforms’ stock jumped 9% in after-hours trading after issuing a first-quarter sales forecast that beat expectations. Tesla shares initially gained post-earnings but pared that to about 1% after CEO Elon Musk said the company would end production of its Model S and X vehicles. Conversely, Microsoft shares fell nearly 5% as its cloud growth slowed in its fiscal second quarter and capital expenditures came in higher than analysts predicted. During the regular session, the S&P 500 briefly touched 7,000 before ending flat, while the Dow Jones Industrial Average added just 12 points. The Federal Open Market Committee kept its benchmark interest rate in a range of 3.5% to 3.75%, stating economic activity is expanding at a “solid pace.”
The market’s mixed bag
So, here’s the thing about this earnings season so far: it’s a total split screen. Meta’s pop is huge and shows that the digital ad market, for them at least, is still incredibly robust. They’re basically printing money. But then you look at Microsoft, and the story is more complicated. A near 5% drop is a serious reaction. It tells you that investors aren’t just looking for growth anymore; they’re looking for efficient growth. When cloud growth slows and spending stays high, it raises questions about future profit margins. And Tesla? That’s just classic Elon Musk theater. The stock moves on the earnings beat, then gets clipped by an unexpected product announcement. It’s volatile, to say the least.
The Fed watches and waits
The Fed’s decision was a non-event, which is exactly what the market wanted. No change, and the language was cautiously optimistic. But look, the real story is in the futures market. According to the CME FedWatch Tool, traders are still only pricing in two quarter-point rate cuts by the end of 2026. That’s a long way off. It means the market is finally internalizing the “higher for longer” message. The Fed can afford to be patient because, as they noted, the economy is still expanding solidly. So why rush to cut and risk re-inflaming inflation? They probably won’t.
What comes next
All of this is just the warm-up act. The main event is Apple’s earnings after the bell on Thursday. Think about it: Apple is the world’s most valuable company. Its performance, especially in China and for its iPhone sales, will set the tone for the entire market. A miss from Apple could easily wipe out Meta’s gains. Plus, we’ve got more economic data like jobless claims. The market is trying to climb this wall of worry—strong earnings versus high rates—and it needs every piece of good news it can get. One day it’s rallying on AI hype, the next it’s fretting about cloud spending. It’s exhausting, honestly. But that’s the market we’re in.
