Tech Giants' AI Spending Stirs Market Euphoria Amidst Fed's Rate Steadiness

U.S. stock index futures rose slightly as investors absorbed tech earnings and a steady Federal Reserve rate. Meta jumped with a positive revenue forecast, while Microsoft's cloud revenue caused its stock to drop. Market focus shifted to AI investment returns, impacting stocks like Tesla and Southwest Airlines.

In the latest market movements, U.S. stock index futures displayed moderate gains on Thursday as investors assessed the earnings reports from tech giants. The Federal Reserve maintained its current interest rates, aligning with expectations and adding to the positive sentiment.

Meta Platforms experienced a nearly 9% increase in premarket trading, owing to an optimistic revenue outlook and a 73% rise in this year's capital expenditure budget. In contrast, Microsoft witnessed a 7.5% decline as disappointing cloud revenue figures raised concerns about the rapid monetization of its OpenAI partnership.

Elsewhere in the market, Southwest Airlines' shares surged 5.3% following a stronger-than-expected profit forecast, and Apple's shares increased slightly ahead of its earnings release. Meanwhile, IBM reported strong fourth-quarter results, driving its stock up by 9.5%.

(With inputs from agencies.)