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U.S. stock futures point to further gains as Meta results, Powell press conference provide cheer

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U.S. stock futures were pointing to a stronger start Thursday, buoyed by upbeat results from Facebook parent Meta Platforms as well as the after-glow from Federal Reserve Chair Jerome Powell’s press conference.

What’s happening
  • Dow Jones Industrial Average futures
    YM00,
    -0.14%

    fell 45 points, or 0.1%, to 34103.

  • S&P 500 futures
    ES00,
    +0.50%

    gained 20 points, or 0.5%, to 4152.

  • Nasdaq 100 futures
    NQ00,
    +1.46%

    increased 172.25 points, or 1.4%, to 12587.

On Wednesday, the Dow Jones Industrial Average
DJIA,
+0.02%

rose 7 points, or 0.02%, to 34093, the S&P 500
SPX,
+1.05%

increased 43 points, or 1.05%, to 4119, and the Nasdaq Composite
COMP,
+2.00%

gained 232 points, or 2%, to 11816.

What’s driving markets

Meta Platforms
META,
+2.79%

— the 14th largest company in the S&P 500 — saw its shares climb 19% in premarket trade as it posted revenue ahead of estimates, guided to a revenue range slightly above expectations, and announced a $40 billion stock buyback.

The Meta financials were released ahead of Alphabet
GOOGL,
+1.61%
,
Apple
AAPL,
+0.79%

and Amazon.com
AMZN,
+1.96%

results due after the close of trade on Thursday. All three advanced in premarket trade.

Markets also had a positive reaction to the Fed’s decision to lift rates by a quarter point. Though the statement from the Federal Open Market Committee pointed to multiple rate hikes still to come, investors were cheered by Powell’s insistance, to MarketWatch’s Greg Robb, that financial conditions hadn’t changed much since the December meeting.

The Chicago Fed’s national financial conditions index has loosened since then, and risky assets like profitless tech stocks and bitcoin have rallied. Powell also talked about the early stage of a disinflation process — by Fundstrat’s Tom Lee’s count, he mentioned some variant of the word 13 times.

“This is a major change in language and tone and shows that Fed is now officially recognizing the growing disinflation forces underway,” Lee said.

There are two overseas central bank decisions, coming from the Bank of England and the European Central Bank, which are each expected to lift interest rates by a half point. There’s also weekly jobless claims data and fourth-quarter productivity numbers to come.

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Jake

Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

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