Futures Climb With Boost From Microsoft’s Surging Cloud Growth

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(Bloomberg) — US futures rose on Thursday as Microsoft Corp. jumped 9.8% after reporting the fastest cloud unit growth in four years. Top semiconductor companies, like Micron Technology Inc. and Nvidia Corp., rallied as well.

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S&P 500 futures were 0.6% higher as of 7:17 a.m. in New York, with Nasdaq 100 contracts up 1.3%, recovering after the tech-dominated Nasdaq 100 closed in correction territory on Wednesday and the broader S&P 500 Index fell 1.5%.

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“The recent news of hyperscalers’ strong June-quarter earnings and future AI data center projects implies only good things for semiconductor demand,” Yardeni Research’s Ed Yardeni wrote in a Thursday note.

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Next up on the earnings front: Apple Inc. and Amazon.com Inc. report after the bell. Apple is this year’s Big Tech stock market star, reclaiming the title of the world’s biggest company with a 24% rally in 2026. Only Apple and Nvidia Corp.’s market capitalizations top $5 trillion. 

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In other earnings news, Meta Platforms Inc. fell 8.6% after reporting free cash flow fell to the lowest level since 2022, while raising the low end of its year forecasts for both capital expenditures and total expenses, adding to concerns about when spending on AI will translate into better growth. Qualcomm Inc. shed 4.9% after issuing a weak profit forecast.

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Investors also continue to digest Federal Reserve Chairman Kevin Warsh’s second press conference on Wednesday afternoon.

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“It’s hard to know what to make of Warsh’s remarks, which involved a lot of well-turned phrases but little in the way of a coherent macro view,” JPMorgan economist Michael Feroli wrote in a note. “He once again failed to specify how he intended to achieve his stridently-asserted inflation resolve. He also cast doubt on whether PCE inflation will remain the Fed’s inflation target in the medium run. Both of these points raise questions about the new chair’s credibility.”

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Feroli pulled his expectation for the next interest-rate hike forward to December from the second half of 2027, adding that “September is clearly a risk if inflation heats up.”

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Meantime, oil slipped less than 1%, with West Texas Intermediate crude around $84 a barrel. “Energy prices are emerging as a key market risk,” Sameer Samana, Wells Fargo Investment Institute, head of Global Equities and Real Assets, wrote. “Higher gasoline and diesel prices could sustain inflation pressures and push interest rates higher.”

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Sectors in Focus

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—With assistance from Ryan Vlastelica.

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