U.S. stock futures faced a decline early, signaling a potential pause in the market rebound amid disappointing corporate earnings and elevated bond yields.
Nasdaq 100 futures dropped 1.0%, S&P 500 futures declined 0.7%, and Dow Jones Industrial Average futures dipped 0.6% ahead of the market open. While Wednesday saw mixed performance with a slight rise in bond yields, the market sentiment appeared more decisive on Thursday, particularly influenced by Meta Platforms’ significant premarket plunge of 13% following its first-quarter earnings report.
The downward trend extended to other Big Tech names such as Amazon and Alphabet. Additionally, IBM stock reported a more than 8% decrease after its earnings announcement. The technology sector remained in focus as Google’s parent company was set to report earnings after market close, alongside Microsoft. Later in the day, Intel would also release its results, with companies like Comcast, Merck, Southwest Airlines, and Caterpillar reporting before the market open.
Investors awaited economic data, with first-quarter U.S. gross domestic product (GDP) data scheduled for release at 8:30 a.m. Eastern time. Market watchers anticipated potential implications for rate-cut expectations, especially in conjunction with the Federal Reserve’s preferred inflation metric, the core personal consumption expenditures (PCE) index, due on Friday.
Trade Nation analyst David Morrison highlighted concerns about a potential uptick in inflation, particularly following this year’s Consumer Price Index (CPI) releases. Any such increase could fuel worries that the Federal Reserve might delay its first rate cut.
In early trading, the yield on the 10-year Treasury note remained flat after a 4 basis points climb.
