Tech Earnings Lift Stock Futures as Oil Retreats

US stock futures advanced Thursday as investors took in a split batch of mega-cap technology earnings, with gains in Alphabet, Amazon and Qualcomm helping support risk appetite before more results later in the day.

S&P 500 futures were higher in early New York trading, while Nasdaq 100 contracts also rose, reflecting investor confidence that large technology companies can still deliver earnings growth even as markets question the cost of the artificial intelligence buildout. Oil prices eased from recent highs, though energy markets remained tense because of the Strait of Hormuz disruption.

AI Bills Face Scrutiny

The earnings reaction showed that investors are no longer rewarding every AI spending plan equally.

Alphabet and Amazon rose in premarket trading after results that pointed to resilient demand and clearer business momentum. Meta fell after investors focused on higher capital-expenditure guidance, while Microsoft also came under pressure as traders assessed whether AI infrastructure spending is translating quickly enough into returns. Apple’s results after the close were set to extend that debate across the largest US technology companies.

April's Sharp Rebound

The S&P 500 remained on track for a strong April gain after recovering from late-March lows.

The rebound has been helped by technology shares, earnings optimism and signs that investors had been positioned too defensively. That matters because a market driven by short covering can rise quickly but also prove fragile if earnings, inflation or geopolitics turn against it.

Fed Keeps Policy Tight

The Federal Reserve added another layer of caution by holding interest rates steady this week.

The central bank kept its benchmark range at 3.50% to 3.75%, with inflation uncertainty and oil-driven price pressure limiting room for easier policy. Investors now turn to first-quarter GDP and March PCE inflation data for evidence on whether the economy is slowing or inflation is becoming harder to contain.

Hormuz Keeps Oil Unstable

Oil prices slipped Thursday, but the Strait of Hormuz remains the main risk in energy markets.

Brent was reported lower in some market updates even as the broader supply backdrop stayed strained by the US-Iran standoff and reduced shipping through the waterway. That leaves investors balancing a near-term pullback in crude against the risk of another price spike if diplomacy fails or military planning escalates.

Global Inflation Pressure Lingers

The oil shock gives the market rally a macroeconomic weak spot.

Higher crude prices can feed into gasoline, transport and production costs, making the Fed’s inflation problem harder and pressuring consumers. That is why equity investors are watching energy prices almost as closely as tech earnings: a prolonged disruption could damage margins outside the energy sector and weaken demand.

Apple Closes The Week's Test

The next test is whether Apple can reassure investors after a week dominated by AI spending questions.

Markets are giving companies credit for growth, but the Meta reaction showed a clear limit: heavy investment needs a credible path to revenue. The risk is that investors discover the April rally was built more on positioning than durable confidence.