US stock futures rose sharply late Thursday as strong earnings from Alphabet (Google’s parent company) sparked a fresh wave of investor optimism in the tech and artificial intelligence (AI) sectors. The upbeat sentiment helped ease worries over ongoing US-China trade tensions, at least temporarily.
Alphabet Earnings Propel Market Optimism
Alphabet Inc. (NASDAQ: GOOGL) surged nearly 5% in after-hours trading, reporting better-than-expected Q1 results and announcing a massive $70 billion stock buyback program. The tech giant also reinforced its long-term commitment to AI innovation—fueling confidence that demand for chips, cloud infrastructure, and AI-driven data centers will continue to soar.
While Alphabet flagged potential risks from a shaky macroeconomic backdrop and noted a slowdown in advertising revenue, the overall results were enough to trigger a bullish breakout across the tech space.
Stock Futures Jump After Strong Session on Wall Street
- S&P 500 Futures: +0.4% to 5,531.0
- Nasdaq 100 Futures: +0.5% to 19,427.25
- Dow Jones Futures: Flat at 40,260.0
Thursday’s cash session was equally bullish:
- S&P 500 Index rose 2.0% to 5,484.78
- Nasdaq Composite gained 2.7% to 17,166.04
- Dow Jones Industrial Average added 1.2% to close at 40,093.40
AI Momentum Lifts Major Tech Names
The positive momentum extended to AI-focused giants:
- Amazon (AMZN) and NVIDIA (NVDA) jumped over 1% each after hours
- TSMC (TSM) climbed 0.5% amid strong chip demand
Tech stocks continue to lead the broader market, with more key earnings from Microsoft (MSFT) and Apple (AAPL) expected next week.
Consumer Stocks Struggle Amid Economic Uncertainty
In contrast, consumer-focused companies delivered mixed results. Firms like Procter & Gamble (PG), Chipotle (CMG), American Airlines (AAL), Skechers (SKX), and PepsiCo (PEP) either cut or suspended guidance, citing rising uncertainty in consumer spending patterns.
Chipmaker Intel (INTC) tumbled 5% in after-hours trading despite beating earnings forecasts, as weak forward guidance and ongoing macro concerns weighed on investor sentiment.
Trade Tensions Still in Focus
President Donald Trump attempted to calm markets, stating that US-China trade talks were ongoing, though Beijing has yet to confirm any new negotiations. Investors remain cautiously optimistic that a reduction in tariffs could be on the table, particularly with 145% tariffs on Chinese imports still in effect.
Takeaway for Investors
With AI driving tech earnings and Wall Street regaining momentum, traders will be watching closely for follow-through in the coming days. However, lingering trade uncertainty and cautious outlooks from key consumer companies suggest a selective bullish trend, with AI and tech leading the charge.
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