On Thursday, the market showed a positive turnaround with S&P 500 futures bouncing back after a tough day for major averages. The Federal Reserve’s decision to maintain rates and suggest hesitancy towards a March cut had a notable impact on overall market sentiment.
Futures linked to the broad-market index and Nasdaq 100 futures saw increases of 0.21% and 0.34%, respectively. Dow Jones Industrial Average futures also edged up by 0.1%, gaining 39 points.
In extended trading, Qualcomm experienced a slight dip despite reporting strong fiscal first-quarter results, surpassing both earnings and revenue estimates. The chipmaker credited its success to robust sales in handset chips.
The previous market session witnessed a downturn, with the Dow Jones Industrial Average dropping by 317 points (0.8%), marking its most challenging day since December. The S&P 500 experienced a 1.6% decline, the steepest drop since September, while the Nasdaq Composite lost 2.2%, marking its worst session since October.
Federal Reserve Chair Powell’s post-meeting conference, where he discouraged hopes for a March rate cut, played a significant role in the market’s downward trend. Analysts noted Powell’s consistent stance of preferring a cautious approach to rate adjustments.
Despite these recent setbacks, January wrapped up positively for major indexes, each posting gains of more than 1% for the month.
Turning to economic indicators, investors were eagerly awaiting Thursday’s reports on weekly jobless claims, the ISM manufacturing index, and construction spending. The January jobs report is scheduled for release on Friday.
Before the opening bell, Merck, Peloton Interactive, and Royal Caribbean were expected to report their latest results. After the market close, mega-cap tech giants Amazon, Apple, and Meta Platforms were set to announce their earnings.
In summary, the market showed resilience in futures trading after a challenging session, and investors remained attentive to economic indicators and corporate earnings reports. This positive trend suggests an underlying strength despite recent fluctuations in the market.