Nasdaq futures fall as Alphabet slides 10% a day after the Fed held rates
Nasdaq 100 futures fell about 1% early Thursday as Alphabet shares slid 10.2% in premarket trading after its quarterly results, while Microsoft rose 3.6%, Reuters reported. On Wednesday the Federal Reserve held its benchmark rate at 3.75% to 4% in a 10-2 vote, and the S&P 500 closed up 0.28%. Thursday’s figures are premarket, not closing prices.
The Fed: The Fed kept rates steady and said inflation “remains elevated,” CNBC reported. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a quarter-point rate hike. Fed Chair Kevin Warsh said he would not prejudge the December decision, MarketWatch reported.
Wednesday’s close: The S&P 500 rose 0.28% to 7,743.98, the Nasdaq Composite rose 0.27% to 26,549.85 and the Dow rose 97.53 points, or 0.19%, to 52,475.10, CNBC reported. The 10-year Treasury yield rose to 5.044%, MarketWatch reported.
Alphabet and Microsoft: Alphabet reported negative free cash flow of $9.07 billion for the quarter, far worse than the $2.70 billion analysts expected, and revenue of $127.58 billion, short of estimates, CNBC reported. CNBC said that if Alphabet closes more than 9.77% lower Thursday, it would be the stock’s worst post-earnings reaction ever. Microsoft said its revenue rose 19% to $92.3 billion, and Reuters reported it delivered a big cash-flow beat.
Premarket: At 5:18 a.m. ET, Dow futures were up 267 points, or 0.51%, S&P 500 futures were down 0.26% and Nasdaq 100 futures were down 1.01%, Reuters reported. Amazon and Intel report results later Thursday, Reuters reported.
Sources
- Reuters via Investing.com — Nasdaq futures fall 1% as Alphabet results intensify AI spending fears
- CNBC — Alphabet falls 10% in premarket, putting it on course for its biggest ever post-earnings drop
- CNBC — S&P 500, Dow rise for third consecutive day after Fed holds steady on rates
- MarketWatch — U.S. Stocks Up, Treasury Yields Mixed After Fed Hold
- Microsoft — Microsoft announces first quarter results
- CNBC — Alphabet Q3 2026 earnings