U.S. stock futures rose on Thursday after two days of advance on Wednesday. Futures of major benchmark indices were higher in premarket.

This followed the Federal Reserve’s decision to hold the interest rate steady at 4.25% to 4.5% on Wednesday.

"The tariff increases announced so far have been significantly larger than anticipated," Fed Chair Jerome Powell said.

He noted that if the tariffs are sustained, they could lead to higher inflation, weaker growth, and a rise in unemployment, directly undermining the Fed’s dual mandate.

"We don’t think we need to be in a hurry. We are going to be watching the data. It may move quickly or slowly. But we’re well-positioned to wait," he said.

Meanwhile, the 10-year Treasury bond yielded 4.31% and the two-year bond was at 3.82%. The CME Group's FedWatch tool‘s projections show markets pricing a 79.8% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Thursday. The SPY was up 1.14% to $567.54, while the QQQ advanced 1.51% to $490.61, according to Benzinga Pro data.

Cues From Last Session:

Leading the gains among sectors in the S&P 500 on Wednesday were health care, consumer discretionary, and information technology stocks, as most sectors closed positively.

Bucking this trend were communication services and materials stocks, which finished the session lower.

In company news, Uber Technologies Inc. (NYSE:UBER) reported first-quarter revenue that fell short of expectations, while Walt Disney Co. (NYSE:DIS) announced positive fiscal second-quarter 2025 results on Wednesday.

On the economic front, U.S. mortgage application volumes saw an 11% increase from the prior week for the week ending May 2nd.

Insights From Analysts:

Sharing a 10-year S&P 500 chart on X, Jurrien Timmer, Director of Global Macro at Fidelity Investments, offered a simple yet thought-provoking approach to navigating uncertainty.

He suggested considering whether to take a long or short position based on the index’s historical performance. Analyzing the technical patterns, Timmer concluded that establishing or increasing “long” positions appeared to be the more favorable strategy.

Timmer stated that the S&P 500 appears to have gravitated back to this long-term uptrend line. This convergence, according to Timmer, suggests that the “market has found its balance.”

Scott Wren, the senior global market strategist at Wells Fargo, stated in his weekly note that “Further near-term upside in the S&P 500 Index is likely limited, and we expect to see more downside volatility before the tariff uncertainties are resolved.”

According to Wren, central bankers keep telling us they are "data dependent." That means Chair Powell and the other voting Federal Open Market Committee members need to see the data that tells the Federal Reserve the labor environment is weak and/or inflation readings are coming down consistently.

“In the meantime, we are looking into 2026 and seeing an economic and earnings recovery. For now, while volatility remains the likely headline, we prefer to focus on quality, like large- and mid-cap U.S. equities, and favor the Energy, Communication Services, Information Technology, and Financials sectors,” he added.

Upcoming Economic Data

Here’s what investors will keep an eye on Thursday:

• Initial jobless claims for the week ended May 3 and U.S. productivity data for the first quarter will be released by 8:30 a.m. ET.

• March’s wholesale inventories data will be out by 10:00 a.m. ET.

Stocks In Focus:

• US Foods Holding Corp. (NYSE:USFD) fell 0.17% in premarket on Thursday as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of 69 cents per share on revenue of $9.38 billion.
• ConocoPhillips (NYSE:COP) was up 1.35% as Wall Street expects it to report earnings of 50 cents per share on revenue of $11.62 billion before the opening bell.
• Coinbase Global Inc. (NASDAQ:COIN) jumped 4.53% as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of 69 cents per share on revenue of $9.38 billion.
• Anheuser-Busch Inbev SA (NYSE:BUD) rose 2.55% after reporting a 7.9% increase in operating profit for the first quarter, also topping market estimates.
• Cleveland-Cliffs Inc. (NYSE:CLF) dropped 9.31% after posting a wider-than-expected loss for the first quarter after the closing bell on Wednesday. The company also said it expects full-year 2025 steel unit cost reductions of approximately $50 per net ton compared to the prior year.
• Digital Ally Inc. (NASDAQ:DGLY) jumped 64.49% after it received a positive determination from the Nasdaq Hearings Panel regarding its continued listing on the Nasdaq Stock Market.
• Costamare Bulkers Holdings Ltd. (NYSE:CMDB) zoomed 40.27%, announced today that it has completed the spin-off of its dry bulk business into a standalone public company, Costamare Bulkers Holdings Ltd.
• Boeing Co. (NYSE:BA) was 0.82% higher after China Airlines announced an order including Boeing 777X passenger and freighter models.
• Asset Entities Inc. (NASDAQ:ASST) skyrocketed 54.57% after it entered into a definitive merger agreement with Strive Asset Management, a subsidiary of Strive Enterprises, Inc.
• Beyond Meat Inc. (NASDAQ:BYND) declined 2.36% after missing analysts’ expectations during the first quarter.
• Carvana Co. (NYSE:CVNA) jumped 4.21% after the company reported better-than-expected results during the first quarter.

Commodities, Gold, And Global Equity Markets:

Crude oil futures were trading higher in the early New York session by 1.10% to hover around $58.71 per barrel.

Gold Spot US Dollar fell 0.77% to hover around $3,338.64 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.45% at the 100.0640 level.

Asian markets ended higher on Wednesday except India's S&P BSE Sensex. On the other hand, Japan's Nikkei 225, Australia's ASX 200, China’s CSI 300, Hong Kong's Hang Seng, and South Korea's Kospi index rose. European markets were mixed in early trade.

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