Wall Street on Edge: Tech Gains and Market Shifts

Wall Street futures rose with gains from tech giants like Meta and Tesla after the Federal Reserve paused its rate-cutting cycle. Meta and Tesla's positive reports contrasted with Microsoft's disappointing cloud forecast. Market dynamics were also influenced by competition from Chinese AI models and mixed earnings across sectors.

Wall Street experienced a notable uptick on Thursday as futures tied to the S&P and Nasdaq climbed. This surge came on the back of strong earnings from tech giants Meta and Tesla, a day after the Federal Reserve decided to pause its rate-cutting cycle.

Meta Platforms, despite surpassing fourth-quarter revenue expectations, issued a cautious forecast for Q1 sales, causing a 0.9% rise in premarket trading. Conversely, Tesla saw a 2.1% increase after announcing cost-effective EV models slated for 2025, alongside plans to test a new autonomous car service by June.

In contrast, Microsoft took a 4.1% hit due to bleak projections for its cloud computing segment. Meanwhile, the U.S. economy braced for further developments with GDP data expected shortly, as investors analyzed market trends and inflation signals.

(With inputs from agencies.)