Stock futures indicated a positive start on Thursday after significant declines in major indexes occurred following the Federal Reserve’s decision to maintain interest rates at their current levels. Shares of Microsoft and Meta Platforms experienced significant movements in contrasting directions, as investors anticipated earnings reports from two additional members of the Magnificent Seven mega-cap technology firms. Futures for the Nasdaq 100, S&P 500, and Dow Jones Industrial Average exhibited increases of 1.4%, 0.7%, and 0.5%, respectively, in the latest trading session. Yesterday, the blue-chip Dow, tech-focused Nasdaq Composite, and benchmark S&P 500 concluded the trading session down by 2.2%, 1.7%, and 1.5%, respectively. The Dow experienced a decline of over 1,150 points, marking its most significant drop in 15 months. This downturn followed the Federal Reserve’s 9-3 decision to maintain interest rates, despite Chair Kevin Warsh’s assertion that the central bank would remain steadfast in its commitment to reducing inflation to the 2% target.

According to the CME Group’s FedWatch tool, traders are pricing in a 63% probability of at least a quarter-percentage-point rate hike at its September meeting, a decrease from 82% a week prior. The 10-year Treasury yield, a key determinant of interest rates across various consumer loans such as mortgages, was recorded at below 4.67% in recent trading, reflecting a decline of nearly two basis points from Wednesday’s closing figure. Market participants will closely monitor the forthcoming monthly Personal Consumption Expenditures inflation data, scheduled for release at 8:30 a.m. ET. Economists anticipate that the PCE, which is the Federal Reserve’s favoured measure of inflation, will indicate a 3.7% increase in prices over the 12 months leading up to June, a decrease from the 4.1% annual rise recorded in May. Core” PCE, which excludes the more volatile food and energy prices, is anticipated to have increased by 3.3% in June, a decrease from the 3.4% recorded in the previous month.

After markets closed yesterday, Microsoft and Meta Platforms issued highly anticipated earnings reports. Microsoft’s results exceeded analysts’ expectations, leading to a nearly 10% surge in shares during premarket trading. In contrast, Meta’s profit fell short as costs increased, resulting in a decline of almost 10% in its shares. Two additional members of the Magnificent Seven tech giants—Apple and Amazon—are set to disclose their results following the market close today. Apple shares declined prior to the market opening, whereas Amazon’s shares experienced a 3% increase. In notable post-earnings moves, shares of Starbucks rose 6%, Mastercard rose 1.5%, and Budweiser maker AB InBev fell 3%. The Roundhill Memory ETF and broader iShares Semiconductor ETF pointed up a respective 4% and 3.5% before the bell after dropping more than 6% and 5% yesterday.

Following a significant increase on Wednesday, oil prices experienced a decline on Thursday as traders evaluated the implications of U.S. forces’ retaliatory strikes against Iran. U.S. benchmark West Texas Intermediate futures experienced a decline of 1.2%, settling at $83.45 a barrel in recent trading, whereas global benchmark Brent crude futures fell by 1.1% to $89.75. Bitcoin was trading at approximately $64,800, reflecting an increase from the overnight lows of about $63,200. The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, decreased by 0.2% to 100.67. Gold futures increased by 2.4%, reaching a price of $4,135 per ounce.