US Futures Climb on Tech Earnings; Yen Weakens: Markets Wrap

(Bloomberg) -- US equity futures rallied Thursday on stronger-than-expected tech earnings and signs the Trump administration may be close to announcing the first round of trade deals to reduce planned tariffs.

Contracts for the S&P 500 and Nasdaq 100 both gained at least 1%, helped by a post-market rally for Microsoft Corp. and Meta Platforms Inc. following their bullish corporate results. Microsoft posted better-than-expected sales, while Meta also exceeded analysts’ sales forecasts, suggesting customer demand hasn’t been rattled by tariffs.

The advance for US futures came after the S&P 500 erased an intraday drop of more than 2% Wednesday to close 0.2% higher. Shares in Japan and Australia both posted modest gains Thursday. A number of markets are shut for holidays across Asia including Mainland China, Hong Kong, Singapore and India.

The yen weakened for a third day after the Bank of Japan left its benchmark rate unchanged at 0.5% while pushing back the timing for when it expects to reach its inflation target. Treasuries edged lower across the curve in Asia, while an index of the dollar rose. 

Sentiment toward US equities was boosted Wednesday after President Donald Trump’s trade representative said the country was nearing an announcement of a first tranche of trade deals that would see the White House reduce planned tariffs on trading partners. Trump acknowledged his sweeping tariff program had risked imperiling him politically, but said he would not rush deals to appease nervous investors. 

Gains for equities mark a “great tactical rally,” driven by positive signs on tariffs, Gareth Nicholson, chief investment officer for international wealth management at Nomura, said on Bloomberg Television. “This is a market for investors to be very nimble.”

US stocks had slumped in early trading Wednesday after government data showed the world’s largest economy contracted at the start of the year for the first time since 2022. The equity rebound was partly helped by a report that the US has been proactively reaching out to China through various channels. At the same time, a cohort of investors is betting the Fed will administer its policy medicine to forestall a recession.

“Weak data could hasten Fed cuts,” said Fawad Razaqzada at City Index and Forex.com. “The Fed is now more likely to step in sooner with its rate cuts to support an ailing economy, while the weakness in data could also encourage Trump to ease off on tariffs and make deals quicker.”

The BOJ said it expects inflation to be consistent with its 2% goal around the second half of its outlook period, which was extended by a year to include fiscal 2027. The central bank halved its economic growth projection to 0.5% for this fiscal year in a sign of heightened caution amid the threat of a global trade war.

Tesla Search

Tesla board members have reached out to several executive search firms to work on a formal process for finding a new chief executive to replace Elon Musk, the Wall Street Journal reported, citing people familiar with the discussions.

Oil was little changed in Asia after settling below $60 a barrel Wednesday for the first time in three weeks as signs emerged that the Saudi-led OPEC+ alliance may be entering a prolonged period of higher production. Gold fell as traders assessed the Fed’s rate path after US data showed signs of downside risks under President Donald Trump’s trade agenda.

The US and Ukraine reached a deal over access to the country’s natural resources, offering a measure of assurance to officials in Kyiv who had feared that President Donald Trump would pull back his support in peace talks with Russia.

To Louis Navellier, chief investment officer at Navellier & Associates., what happens next very much depends on the tariff developments.

“If we get a series of announcements soon of trade agreements reached, optimism will rise, and the Fed will likely cut soon,” he said. “If things drag out for weeks and months, the damage to supply chains and inevitable near-term inflation could cause shouts of stagflation and be very bearish for stocks.”

Some of the main moves in markets:

Stocks

• S&P 500 futures rose 1% as of 1:55 p.m. Tokyo time
• Nikkei 225 futures (OSE) rose 1.1%
• Japan’s Topix rose 0.4%
• Australia’s S&P/ASX 200 rose 0.2%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%
• The euro fell 0.2% to $1.1310
• The Japanese yen fell 0.6% to 143.86 per dollar
• The offshore yuan was little changed at 7.2769 per dollar

Cryptocurrencies

• Bitcoin rose 0.4% to $94,916.79
• Ether rose 0.9% to $1,810.02

Bonds

• The yield on 10-year Treasuries advanced two basis points to 4.18%
• Japan’s 10-year yield declined 4.5 basis points to 1.265%
• Australia’s 10-year yield advanced three basis points to 4.19%

Commodities

• West Texas Intermediate crude fell 0.1% to $58.13 a barrel
• Spot gold fell 1.9% to $3,227.83 an ounce

This story was produced with the assistance of Bloomberg Automation.

©2025 Bloomberg L.P.