U.S. stock futures declined modestly on Wednesday evening as market participants parsed uneven earnings from large technology companies and digested the Federal Reserve's latest policy decision, while positioning ahead of further high-profile corporate results.
By 20:10 ET (00:10 GMT), S&P 500 Futures were down about 0.2% at 6,994.0 points. Nasdaq 100 Futures were essentially flat at 26,159.75 points, and Dow Jones Futures traded roughly 0.3% lower at 49,019.0 points.
Market internals and after-hours movers
The main U.S. equity indexes finished the regular trading session largely composed. The S&P 500 closed roughly unchanged and remained near record levels, while both the Dow Jones Industrial Average and the NASDAQ Composite posted small gains.
In extended trading, several heavyweight technology names produced divergent moves. Meta Platforms Inc saw its shares jump roughly 8% after the company issued a revenue projection for the first quarter that exceeded market expectations, citing resilient advertising demand and rising returns from investments in artificial intelligence.
Tesla Inc shares rose nearly 2% in after-hours trade after the electric-vehicle manufacturer reported fourth-quarter results that beat analysts' estimates.
Conversely, Microsoft Corporation slipped about 7% in after-hours trading. The company reported slower growth in its cloud business for the fiscal second quarter and provided guidance that left operating margins for the current quarter softer than analysts had expected. Management framed the weaker near-term margin outlook as reflective of elevated cost pressures associated with substantial AI-related spending.
Federal Reserve decision and market outlook
On the policy front, the Federal Reserve held its target rate steady at 3.50%–3.75%, as broadly anticipated. The decision marked a pause following three consecutive cuts.
In its accompanying statement, the Fed highlighted that inflation remains elevated, while economic growth is solid and the labor market appears to be stabilizing. The communication offered little explicit guidance on the timing of future rate reductions.
Market participants continue to price in the possibility of two additional cuts later in the year, but officials did not provide a clear signal about near-term easing. The policy release also reflected a split among voting members, with some policymakers dissenting in favor of lower rates.
Corporate calendar and what traders are watching next
Attention now turns to forthcoming earnings reports from Apple Inc, Caterpillar Inc, and Lockheed Martin, scheduled later this week. Apple's results are drawing particular scrutiny amid concerns about cost pressures, while the industrial and defense names will be closely watched for indications of cyclical demand trends.
With these corporate updates approaching, investors are balancing company-specific earnings signals - notably the mixed technology results tied to advertising and AI investment returns - against the Fed's cautious tone on future rate moves.
Bottom line
Markets are exhibiting caution after a Fed pause and a set of major tech earnings that painted a nuanced picture: robust revenue momentum for some firms contrasted with margin pressure tied to heavy AI-related expenditures for others. Traders will be looking to incoming corporate reports later this week for additional directional cues.