Summary: U.S. stock index futures were mixed in the evening session after a muted cash market close, punctuated by a Fed decision to hold interest rates, a notable jump in oil prices tied to shipping-route concerns, and a string of large-cap technology earnings that produced varied after-hours moves.
Market snapshot
S&P 500 Futures rose 0.4% to 7,197.75 points. Nasdaq 100 Futures climbed 0.9% to 27,570.75 points by 21:28 ET (01:28 GMT). Dow Jones Futures traded lower, down 0.3% at 48,874.0 points.
In the cash market, the tone was subdued. The Dow Jones Industrial Average closed down 0.6%, while the S&P 500 and the NASDAQ Composite finished largely flat, reflecting a cautious investor stance ahead of additional corporate reports and key economic data.
Policy backdrop and energy-driven inflation worries
The Federal Reserve elected to keep its policy rate unchanged for a third consecutive meeting, a widely expected outcome. The statement accompanying the decision pointed to increasing divisions within the committee on the future path of rates.
Chair Jerome Powell warned that inflation pressures - particularly from energy - "haven't even peaked yet," signaling a careful approach to policy going forward. Powell also noted he will remain on the Fed's board as a governor after he steps down as chair.
At the same time, oil prices surged. Crude settled 6% higher on Wednesday and extended gains in Asian trading the next day amid concerns about constrained flows through the Strait of Hormuz. Geopolitical risk rose after reports that U.S. President Donald Trump is preparing a prolonged blockade of Iran. A Wall Street Journal report late Wednesday said Washington is pitching a "Maritime Freedom Construct" to allies aimed at securing shipping lanes, even as tensions remain elevated and diplomatic efforts stall.
Megacap earnings drive after-hours moves
After the closing bell, earnings from several large technology companies influenced after-hours price action.
- Microsoft (NASDAQ:MSFT) shares were little changed after reporting better-than-expected results, supported by robust cloud and AI demand.
- Meta Platforms (NASDAQ:META) declined 7% following guidance that included lower capital expenditure.
- Amazon (NASDAQ:AMZN) rose 4% after beating earnings expectations.
- Alphabet (NASDAQ:GOOGL) jumped 7.2%, helped by resilient advertising performance.
Additional corporate reports are scheduled for Thursday. Morning-session releases include Caterpillar (NYSE:CAT), Merck (NYSE:MRK), and Eli Lilly (NYSE:LLY). Apple (NASDAQ:AAPL) is due to report later in the day.
Economic calendar
A raft of economic data is also slated for Thursday, headlined by the advance estimate of first-quarter gross domestic product and the personal consumption expenditures (PCE) index, which the Fed uses as its preferred gauge of inflation. These releases are likely to influence market expectations for policy and growth.
Implications for sectors
Energy markets are sensitive to developments around the Strait of Hormuz and any policy steps that could affect trade routes or supply. Financial markets are parsing Fed rhetoric and committee division for clues on rate path. Technology stocks remain a primary driver of after-hours volatility as investors react to earnings beats, guidance shifts, and capital-expenditure signals from major firms.