Microsoft Offset Fed Concerns as US Stock Futures Stabilize
US stock index futures stabilized on Thursday after a sharp decline driven by uncertainty over the Federal Reserve's policy outlook. Microsoft's quarterly sales and cloud growth projections exceeded expectations, easing investor concerns about massive AI spending.
The tech giant's forecast-beating results helped offset worries sparked by Alphabet and Tesla's negative cash-flow reports last week. The Nasdaq dropped 10% from its early June peak on Wednesday amid growing unease over high valuations in the AI-linked sector.
Meta Platforms' 9.2% decline after reporting a 91% drop in second-quarter free cash flow underscored the financial strain of its costly AI buildout. Apple and Amazon are scheduled to release earnings after markets close on Thursday.