Stock Futures Rise as Big Tech Reports Strong Earnings While Tesla Faces Leadership Uncertainty

U.S. stock futures surged early Thursday following positive quarterly results from major technology companies, specifically Meta Platforms and Microsoft. Futures linked to the Dow Jones Industrial Average increased by 219 points, or 0.54%, while S&P 500 futures experienced a jump of 1.02%, and Nasdaq 100 futures rose by 1.43%. Meta saw its shares rise over 5% following better-than-expected revenue in the first quarter, while Microsoft stocks jumped nearly 7%, benefiting from strong fiscal third-quarter beats, especially from its Azure cloud services and positive future guidance. Conversely, Tesla's shares fell over 3% in after-hours trading, primarily due to reports regarding the company's board seeking a new chief executive officer to replace Elon Musk. This comes amid declining sales and profits, with a particularly sharp 71% plunge in net income in the first quarter compared to the prior year. Tesla's revenue dropped 9% year-on-year to $19.34 billion, falling short of analyst expectations of $21.11 billion. The market experienced volatility on Wednesday as the S&P 500 and Dow faced significant intraday declines before recovering late in the session. Initial market reactions were mixed following disappointing economic data from the Commerce Department that indicated a 0.3% contraction in GDP for the first quarter, marking the first instance of negative growth since Q1 of 2022. Traders, however, began to buy back into the market, resulting in a recovery for both the S&P 500 and Dow. April was a tumultuous month for the markets, with earlier fears driven by President Trump's shifting tariff policies creating uncertainty. The months have seen fluctuations, culminating in the S&P 500 momentarily hitting bear market territory, before recovering some losses but ultimately finishing down for April with a 0.8% decrease. Notably, UBS Global Wealth Management's chief investment officer, Solita Marcelli, suggested that while market volatility driven by policy uncertainty may endure, a more constructive outlook might be emerging. Looking ahead, investors are keenly awaiting quarterly results from CVS Health, Eli Lilly, and McDonald's, along with tech giants Apple and Amazon. Scheduled economic reports on jobless claims and manufacturing sectors are also on the radar, with a key nonfarm payrolls report due soon. This mixed landscape highlights the complexity of current market dynamics, where positive performance from tech giants cannot fully overshadow concerns about leadership changes in influential firms like Tesla, combined with a backdrop of economic uncertainty. The interplay of earnings reports, leadership narratives, and economic indicators will be crucial in guiding investor sentiments in the coming days.