US stock futures rise as oil tops $110 ahead of GDP

What changed in early Thursday trade

U.S. stock index futures moved higher on Thursday, reversing an earlier cautious tone as investors weighed strong corporate earnings against renewed inflation worries linked to higher oil prices. Futures for the S&P 500 rose 0.4% before the opening bell, while Dow Jones Industrial Average futures gained 0.6%. Nasdaq futures were up 0.5%. Bloomberg market data showed the move was also visible in mini contracts early in the day.

At about 6:46 a.m. EDT, Dow Jones mini futures were up 351 points. S&P 500 mini futures were higher by 13.5. Nasdaq 100 minis gained 66.25. The push and pull for markets remained clear: upbeat Big Tech and industrial earnings supported risk appetite, but crude oil staying above $110 a barrel kept inflation sensitivity high.

Oil becomes the key macro swing factor

Brent crude futures surged to their highest level in nearly four years amid fears of a prolonged disruption to global oil supplies. The move followed an Axios report saying U.S. President Donald Trump was set to be briefed by the head of U.S. Central Command on fresh plans for possible military action against Iran. Prices later eased but continued to trade above $110 a barrel.

Reuters reported Brent was up as much as 2.3% earlier in the session, as traders assessed longer-term supply risks linked to Iran. ING Economics commodities strategy head Warren Patterson described the shift as moving from “over-optimism” to “the reality of the supply disruption,” underscoring why energy prices were again feeding into rate and inflation expectations.

Alphabet’s results lift tech sentiment

Alphabet was a key positive driver in premarket trade. Shares of the Google parent surged 7.4% after it posted robust first-quarter results, which it said were supported by investments in artificial intelligence. The company reported earnings of $12.6 billion, or $1.11 per share, marking an 81% jump from a year earlier.

CEO Sundar Pichai highlighted AI as a driver across Alphabet’s businesses, according to the update referenced in the live market coverage. In another data point from the same earnings flow, Alphabet shares were also cited as up 6.3% in premarket trade after a record quarter for its cloud unit. The reaction underlined how closely investors are tracking monetisation and cost discipline in AI-related spending.

Amazon adds to the “cloud is resilient” narrative

Amazon also helped set a firmer tone for index futures after reporting first-quarter net sales rose 17% to $181.5 billion. The company said AWS revenue jumped 28% to $17.6 billion. CEO Andy Jassy said AWS growth was the strongest in 15 quarters.

The company also highlighted momentum in its chip business, saying the unit had hit a $10 billion annual revenue run rate. Together, the cloud and chip updates mattered for markets because they touched on two areas that investors have used to judge whether AI investment is translating into tangible demand.

But Meta and Microsoft revive cost concerns

Not all Big Tech reactions were positive. Meta Platforms and Microsoft were down 8.6% and 1.9%, respectively, as investors focused on capital spending plans tied to ramping up AI. The split reaction kept the broader narrative balanced: earnings strength is supporting equities, but the market remains sensitive to the cost of growth.

This earnings season dynamic also helps explain why futures were higher without looking euphoric. The market’s response has been company-specific, with traders rewarding clearer revenue acceleration while penalising higher spending uncertainty.

Other earnings movers: pharma and industrials

Outside technology, earnings updates also supported sentiment. Shares of Eli Lilly rose 3.1% after the drugmaker raised its full-year profit forecast on strong weight-loss drug demand. Merck gained 5.8% on better-than-expected first-quarter sales.

Caterpillar advanced 6% after posting higher quarterly profit. These moves gave the market support across sectors, even as the oil shock narrative continued to influence inflation-sensitive pockets of the market.

Fed policy: rates steady, inflation still “elevated”

The futures move came less than 24 hours after the Federal Reserve kept rates steady in a range of 3.50% to 3.75%. The Fed noted inflation remains “elevated,” while also flagging increased uncertainty tied to developments in the Middle East.

For investors, that combination puts more weight on incoming data and on energy prices. With crude elevated, markets have been forced to consider whether oil could keep inflation pressures sticky even if growth moderates.

The next catalyst: GDP and PCE inflation data

Attention turned to key U.S. macro releases due Thursday, including first-quarter GDP and PCE inflation data. These prints matter because they can influence expectations on the Fed’s next steps, particularly when the central bank is already highlighting uncertainty and inflation persistence.

In this setup, strong earnings can lift individual stocks, but index direction can still hinge on how markets interpret GDP momentum alongside inflation signals. That is why oil, rates, and earnings were all driving headlines at once.

How Wall Street closed midweek

U.S. stocks ended the prior session mixed as oil rallied and investors digested the Fed decision. The Dow Jones fell 0.57%. The S&P 500 slipped 0.04%. The Nasdaq added 0.04%.

Those near-flat headline moves masked sector-level dispersion. The next day’s premarket action echoed the same pattern, with sharp single-stock reactions and a broader market still tethered to macro risk.

Key numbers to track

Company moves and reported financial figures

Why this matters for markets

The day’s setup showed how quickly sentiment can switch when earnings headlines collide with geopolitical risk. Strong cloud numbers from Alphabet and Amazon helped futures recover, but oil above $110 per barrel kept inflation and policy risk in the foreground.

With the Fed holding rates and explicitly pointing to Middle East uncertainty, market sensitivity to energy-linked inflation has increased. That makes Thursday’s GDP and PCE data a key near-term test for whether equities can extend gains driven by earnings, or whether higher oil prices force a more cautious repricing.

Conclusion

U.S. futures rose ahead of Thursday’s session as Alphabet and Amazon results supported risk appetite, while Brent holding above $110 kept inflation concerns active. Investors now await first-quarter GDP and PCE inflation data for the next clear signal on growth and price pressures.