Tonight’s Highlights: Cloud Giants Validate AI Commercialization Potential; Yen Volatility Intensifies
U.S. stock futures trended higher during Thursday’s pre-market session as investors digested a mixed bag of earnings from the "Big Four" AI leaders.
Following the Federal Reserve’s lead, both the Bank of England and the European Central Bank maintained their current monetary policies, though European policymakers issued fresh warnings regarding upside inflation risks.
As of press time, Nasdaq 100 futures (June contract) rose 0.73%, S&P 500 futures gained 0.50%, and Dow futures climbed 0.63%.
Overall, the world’s three largest cloud computing giants painted an optimistic picture, with cloud revenue growth exceeding expectations and proving that AI is now generating meaningful returns. Alphabet surged over 7% and Amazon rose more than 3% in pre-market trading, while Microsoft saw a slight softening.
Conversely, Meta dropped over 8% after reporting a 20-million decline in Daily Active Users across its "Family of Apps" and raising its FY2026 capital expenditure guidance to a range of $125–$145 billion (up from $115–$135 billion).
Earlier estimates indicate that the upper end of the 2026 capex for these four tech titans alone has reached the $700 billion threshold—spending that will translate into revenue for companies across the supply chain this year.
Apple and the high-flying storage stock SanDisk are scheduled to report earnings after the closing bell.
International oil prices saw volatile pre-market swings, with Brent crude diving toward $107 per barrel after nearly touching $115.
The U.S. and Iran remain locked in a war of words, with no signs of the Strait of Hormuz reopening. Earlier reports that President Trump would "be briefed on new options for strikes against Iran" initially triggered a sharp rally in prices.
The Japanese Yen also experienced massive pre-market fluctuations. After Japan’s top currency diplomat, Atsushi Mimura, warned short-sellers that this was their "last reminder" to exit, the Yen rebounded from a two-year low of 160 back to 155 against the dollar.
Finance Minister Satsuki Katayama also stated that the time for "decisive action" is approaching. However, given the frequency of such verbal interventions, analysts worry the impact may be short-lived without actual market intervention. For context, Japan spent approximately $100 billion in 2024 to defend the 160 level.
Thursday’s U.S. economic data had a muted market impact. Q1 real GDP grew at an annualized rate of 2.0%, slightly below the 2.3% forecast. March Core PCE rose 0.3% month-on-month, meeting expectations, while initial jobless claims for the week ending April 25 fell to 189,000—the lowest level since 1969.
Other News Highlights
EU to Amend Chips Act for Direct Investment: Reports suggest the "Chips Act II" will allow the European Commission to invest directly in semiconductor fabrication plants. The draft, expected in late May, also aims to bolster development in critical manufacturing technologies including equipment and materials.
Qualcomm Sees Bottom in China Mobile Chip Business: Qualcomm shares jumped over 11% pre-market, eyeing new 2026 highs. Despite a cautious outlook, management emphasized that QCT Android chip shipments in China will bottom out this quarter before returning to sequential growth.
SoftBank’s Intel Gains: Amid reports of a new AI and robotics entity, sources say SoftBank considered selling Intel shares to raise capital. Having purchased nearly $2 billion in Intel stock last August at $23/share, the position is now worth nearly $10 billion with Intel trading at $96—a gain of over $7 billion in less than a year.
Eli Lilly Hikes Full-Year Guidance: Eli Lilly shares rose nearly 6% as Q1 results crushed estimates due to surging demand for weight-loss drugs. The company raised its 2026 revenue guidance to $82–$85 billion, up from the previous $80–$83 billion range.