Dow futures jump 140 points: 5 things to know before Wall Street opens

• Microsoft revenue rose 18% to $90 billion with Azure growth of 43%, while Meta's free cash flow collapsed to $784 million as capex exceeded $31 billion, splitting the AI investment narrative
• GDP and PCE inflation data due at 8:30 AM ET could reset rate expectations after the Fed held rates with three dissenters favoring a quarter-point increase
• Oil prices near $91 per barrel following US strikes on Iranian targets keep inflation risks elevated, while Apple and Amazon earnings at 5 PM ET could drive late volatility

Market Summary

Pre-Market Futures

U.S. stock futures advanced Thursday morning, with Dow futures up 140 points (+0.27%), S&P 500 futures gaining 0.53%, and Nasdaq 100 futures climbing 1.18% at approximately 7:15 AM ET. The upward momentum follows Wednesday's broad market sell-off.

Key Economic Data Ahead

Critical economic releases scheduled for 8:30 AM ET include Q2 GDP estimates, June personal income/spending data, and weekly jobless claims. Investors are closely watching core PCE inflation readings, which could pressure technology stocks if unexpectedly high and push Treasury yields further upward.

Federal Reserve & Bond Market

The Fed's recent hold decision revealed internal division, with policymakers Beth Hammack, Neel Kashkari, and Lorie Logan favoring a quarter-point rate increase. The 30-year Treasury yield reached 5.239%, its highest level since 2007, raising concerns about equity valuations and financing costs.

Corporate Earnings Divergence

Microsoft shares rallied after reporting 18% revenue growth to $90 billion with Azure expanding 43%, demonstrating successful AI monetization. Conversely, Meta plunged as free cash flow collapsed to $784 million while capital expenditure exceeded $31 billion, highlighting the market's preference for immediate AI profitability over infrastructure investment.

Apple and Amazon are scheduled to report results at 5 PM ET, with investor focus on iPhone demand, China exposure, services growth, and AI infrastructure returns.

Commodities & Inflation Risk

Crude oil traded near $91 per barrel following U.S. strikes on Iranian targets and ongoing shipping threats through the Strait of Hormuz. Sustained elevated oil prices could reignite inflation concerns and benefit energy sector stocks while pressuring broader market valuations.