Tech Giants’ Earnings Boost Overnight S&P 500 Futures; Inflation Metrics, Chevron & Exxon Mobil Reports Ahead

Overnight trading of S&P 500 futures witnessed significant momentum after tech titans Alphabet and Microsoft delivered stellar earnings figures yesterday, causing their respective stocks to surge by over 10% and almost 4%. This positive trend could potentially lift the major indices on Friday morning as they recover from Wednesday’s steep declines that were triggered due to fresh economic data indicating a slowdown in growth coupled with persistently high inflation.
As of now, approximately 38% of S&P 500 companies have already reported their quarterly results for this season, and an impressive 79% of them surpassed analysts’ expectations. Investors are eagerly anticipating the release of energy giants Chevron and Exxon Mobil’s first-quarter reports on Friday morning before market opening time as these announcements have been awaited with much fanfare by financial experts worldwide.
In addition to this, March’s PCE reading is scheduled for publication tomorrow which will provide detailed insights into the latest inflation metrics that are closely monitored by the Federal Reserve. Economists predict a monthly growth rate of 0.3% and an annualized increase of 2.6%, with core expenses projected to surge up only half this level during regular reports on growth rates.
The Fed is expected to slow down its balance sheet runoffs in the near future, but it may hold off until September before initiating any reductions in interest rates as inflation remains stubbornly high despite a recent economic downturn.