U.S. equity futures rose Wednesday night as investors digested the latest Big Tech earnings and the Federal Reserve's decision to hold rates steady. Futures tied to the Dow Jones Industrial Average added 158 points, or 0.3%. S&P 500 futures advanced 0.4%, and Nasdaq 100 futures climbed 0.7%. In regular trading, the Dow Jones Industrial Average dropped 1,153.18 points, or 2.19%, marking the blue chip index's worst decline since April 2025. The broad market S&P 500 slid 1.52%. The Nasdaq Composite fell 1.74%, ending the session more than 10% off its intraday record. Meta Platforms lost 7% in extended trading after issuing a soft revenue forecast . Microsoft, by contrast, jumped 8% on surging growth from its Azure business. The results underscored a widening divergence in how Big Tech's AI strategies are playing out. "This is ultimately a tale of two AI investment strategies. One company is increasing profits while spending heavily, while the other is allowing those costs to eat into its bottom line," said Stephen Evans, chief investment officer at Pave Finance. "Microsoft's results suggest concerns about slowing growth may have been overstated, particularly after the pressure its shares have faced," he added. "Meta's advertising business remains strong, but it must now demonstrate greater cost control and more consistent returns from its investment before confidence fully returns." Traders were also weighing the Federal Reserve's decision after Wednesday's meeting to leave interest rates unchanged, which sent long-dated Treasury yields sharply higher. The 30-year Treasury yield soared 10 basis points to above 5.2%, hitting its highest level since 2007. "The Fed remains patient [and in] a wait-and-see mode, and will continue to monitor how the economy evolves in the upcoming months," said Sameer Samana, Wells Fargo Investment Institute's head of global equities and real assets. "This leaves the September meeting 'live' as an opportunity for the Fed to act if supported by the incoming data to appease rising inflation pressures." On Thursday, traders will be watching for weekly jobless claims and the personal consumption expenditures price index reading for June. The Dow Jones consensus calls for headline inflation to have grown at an annual rate of 3.7%. Excluding volatile energy and food, they anticipate it will have risen 3.3%. The first reading of the second quarter's real GDP is also due in the morning. One of the busiest weeks of corporate earnings continues Thursday with Bristol-Myers Squibb set to report before the bell. Amazon , Apple and Coinbase are on deck for after the close. Shares of Microsoft rallied 7% in extended trading after the company's finance chief, Amy Hood, said she sees further growth in capital expenditures for the 2027 fiscal year, pointing to "demand signals across our portfolio." She also reiterated plans for 2026 capital spending. Capital expenditures and finance leases for the fiscal fourth-quarter, at $41 billion, jumped 69%. For 2026, the company said it will lengthen the useful life of office and data center buildings to 25 years from 15. And more future data center leases will...
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