United States stock futures moved higher on Tuesday night (Wednesday AEST), as investors looked to a fresh slate of corporate earnings while awaiting the Federal Reserve’s closely watched interest rate decision due Wednesday afternoon (Thursday AEST).
By 8:25 am AEST (10:25 pm GMT), futures linked to the Dow Jones Industrial Average were up 0.7%. S&P 500 futures climbed 0.8%, while Nasdaq 100 futures advanced 0.9%.
Advanced Micro Devices (AMD) added 0.9% in after-hours trading following better-than-expected first-quarter earnings. The chipmaker posted adjusted earnings of $0.96 per share, on revenue of US$7.44 billion, exceeding market expectations of $0.94 per share and $7.12 billion, respectively.
Super Micro Computer, however, dropped about 6.8% after reporting third-quarter results that missed expectations. The server manufacturer delivered earnings of $0.31 per share and $4.60 billion in revenue, well below estimates of $0.41 per share and $5.01 billion.
Arista Networks fell 5.4% despite beating consensus estimates. First-quarter revenue came in at $2.00 billion versus expectations of $1.97 billion, and adjusted earnings were reported at $0.65 per share compared to the expected $0.59 per share.
In contrast, Electronic Arts gained 5.8% after the video game publisher reported stronger-than-expected adjusted revenue of $1.80 billion for its fiscal fourth quarter, above the $1.56 billion projected, while earnings per share came in at $1.35 versus $1.05 expected.
These after-hours moves followed a downbeat regular session on Wall Street, where the Dow dropped 1%, the S&P 500 lost 0.8%, and the Nasdaq Composite declined 0.9%.
Attention now turns to the Federal Reserve, which is widely expected to keep rates unchanged. The CME FedWatch Tool shows markets are pricing in a 97.8% probability that the central bank holds its benchmark rate steady.
Traders will closely scrutinise Fed Chair Jerome Powell’s press conference for clues on future rate moves and the central bank’s view of the economy.
The meeting comes amid renewed political pressure, with President Donald Trump having recently criticised Powell, stating his “termination cannot come fast enough”.
While White House economic advisor Kevin Hassett previously suggested exploring Powell’s removal, Trump later clarified he had “no intention” of firing the Fed chair.
The Fed’s policy path is further complicated by concerns that Trump’s proposed tariffs could reignite inflation, potentially limiting the central bank’s flexibility on rate cuts.
Market sentiment has also been dampened by volatility and rising fears that the U.S. economy could be approaching a recession.
Meanwhile, investors continue to monitor upcoming earnings reports from major companies including Disney, Carvana and Uber.
