OP Wire 4/26 (OP – Lite)

Market Digest: Futures Inch Higher Amid Tech Earnings and Inflation Data Anticipation

Stock futures in New York edged higher on Friday as investors assessed earnings reports from major technology companies and awaited the release of crucial U.S. inflation data. The movement follows a session where main indices on Wall Street closed lower, impacted by disappointing U.S. economic growth figures in the first quarter and concerns about persistent inflationary pressures.

Meta Platforms Inc. (NASDAQ: META) contributed to the subdued sentiment after revealing potential future revenue challenges due to increased spending on artificial intelligence endeavors. The announcement sent Meta’s shares tumbling over 10% in Thursday’s trading, dragging down the broader communications sector along with it. Other sectors, including healthcare, consumer staples, and real estate, also experienced declines.

Meanwhile, Alphabet Inc. (NASDAQ: GOOGL) saw its shares surge in after-hours trading following robust first-quarter revenue results and the declaration of its inaugural dividend of 20 cents per share. The California-based tech giant reported a revenue increase to $80.5 billion, surpassing Wall Street estimates, driven by strong demand for AI services on its Azure cloud computing platform. Similarly, Microsoft Corporation (NASDAQ: MSFT) witnessed a positive market reaction after posting better-than-expected income and revenue figures, fueled by its strategic investments in the AI sector.

In the social media sphere, Snap Inc. (NYSE: SNAP) exceeded earnings expectations, leading to a sharp increase in its stock price during after-hours trading. The company reported a revenue of $1.2 billion for the first quarter, propelled by improvements in its advertising services and an uptick in daily active users on its Snapchat app.

Looking ahead, economists anticipate mixed readings from the March Personal Consumption Expenditures (PCE) price index, a key metric for U.S. inflation. The data release may influence the Federal Reserve’s approach to potential interest rate adjustments amid ongoing economic uncertainties.

In the commodities market, oil prices edged higher in European trade, poised for a positive weekly close amid concerns about tightening supplies and geopolitical tensions in the Middle East. However, market participants remain cautious ahead of the U.S. inflation data, which could provide further insights into the trajectory of interest rates.

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