Dow Futures show a slight increase, as attention turns to a series of technology earnings reports and an impending monetary policy announcement from the U.S. central bank. The Federal Reserve maintains its current interest rates, emphasizing the robustness of the U.S. economy, while also revealing intentions to sustain significant investment in their artificial intelligence initiatives. indicates plans to invest in Elon Musk’s private AI venture, while gold reaches yet another record high.

Dow Futures predominantly indicated an upward trajectory on Thursday, as market participants processed a Federal Reserve interest rate decision alongside a series of earnings reports from major technology firms. As of 03:02, the Dow futures contract exhibited minimal variation, with futures increasing by 13 points, representing a 0.2% rise, while another set of futures advanced by 85 points, equivalent to a 0.3% increase. On Wednesday, the benchmark S&P 500 surged above the 7,000-level for the first time ever, driven by persistent optimism surrounding artificial intelligence and expectations for Federal Reserve interest rate reductions later this year. Analysts noted that the primary emphasis was on the technology sector, with firms throughout the industry largely delivering strong performance and providing positive outlooks. Supported by relative economic resilience amid geopolitical and trade uncertainties, the S&P 500 has experienced a notable surge, accumulating approximately 1,000 points since November 2024.

The Fed maintained interest rates at a range of 3.5% to 3.75% as anticipated on Wednesday, with policymakers emphasizing indications of robustness in the overall economy and stabilization in the labor market. Notably, a significant portion of the Fed’s 12-member rate-setting board chose to maintain the current borrowing costs. However, Stephen Miran, who was appointed as a temporary Fed Governor by President Donald Trump last year, along with Christopher Waller, a candidate for the next Fed Chair, both advocated for a quarter-point reduction. Trump has consistently pressured the Federal Reserve to implement swift and substantial reductions in interest rates to stimulate economic growth, with current Fed Chair Jerome Powell being a notable focus of his critiques. Concerns regarding the threats to the independence of the Fed from political influence have intensified as a result, and were further exacerbated earlier this month by the initiation of a Justice Department investigation into Powell. During a press conference following the decision, Powell, who had earlier expressed disapproval of the investigation, refrained from offering additional remarks on the issue. Instead, he concentrated on the robustness of the U.S. economy and forecasted that the impacts of Trump’s extensive tariffs on inflation might soon fade. Powell indicated that although the possibility of a rate increase in the near term is not “off the table,” it “isn’t anybody’s base case right now.” Analysts indicated that the Fed’s “more upbeat growth assessment” implies that a policy easing cycle characterized by a series of rate cuts last year is “close to a conclusion.” Despite this more optimistic outlook, the U.S. dollar continued to weaken this week, as evidenced by a tracker of the currency against a basket of its peers declining.

Substantial investment in artificial intelligence continued to be a prominent theme in the earnings reports from Meta, the parent company of Facebook, and Microsoft on Wednesday, as both firms reaffirmed their commitments to the emerging technology. An AI arms race is intensifying within the technology sector, resulting in a significant increase in expenditures on the necessary infrastructure and equipment, such as data centers and chips, essential for supporting advanced AI models. In anticipation of the forthcoming quarterly reports, analysts contend that these companies, alongside their primary competitors, are expected to encounter increasing pressure to demonstrate returns from their substantial investments. Meta announced that its capital expenditures are projected to reach as high as $135 billion this year, significantly exceeding expectations and nearly doubling the total for 2025. The parent company of Instagram accompanied this announcement with the disclosure of unprecedented fourth-quarter sales, seemingly alleviating sufficient investor concerns to boost Meta’s stock price in after-hours trading. Microsoft shares experienced a decline. The group indicated that it had invested more in its AI development than many had expected; however, concerns persisted regarding a modest decline in growth within its crucial Azure cloud-computing segment compared to the previous quarter. Following the market close on Thursday, investors will have the opportunity to analyze additional earnings from the technology sector, specifically from Apple, the manufacturer of the iPhone.

Tesla reported fourth-quarter results on Wednesday that surpassed estimates, indicating a shift towards artificial intelligence, even as its primary automotive sector continues to experience ongoing challenges. The electric vehicle firm experienced a 2.7% increase in its share price after hours, following the announcement of adjusted earnings of $0.50 per share on revenue of $24.9 billion, exceeding the consensus estimates of $0.45 and $24.78 billion, respectively. The board’s decision to allocate $2 billion to xAI, the private artificial intelligence venture founded by Elon Musk, stands out as a significant aspect of the release, reflecting a strategic initiative to merge digital intelligence with physical hardware. Management characterized 2025 as a pivotal phase during which the company underwent a “transition from a hardware-centric business to a physical AI company.” Despite a year-over-year decline of 11% in automotive revenues for the quarter, the energy storage division achieved a remarkable milestone with record deployments of 14.2 gigawatt-hours. Tesla, facing heightened competition, has seen its position as the leading EV manufacturer challenged by China’s BYD. In response, the company is redirecting its focus from automotive production to advancements in AI and robotics.

Gold prices surged to an unprecedented level approaching $5,600 an ounce on Thursday, continuing their upward trajectory in the wake of a report indicating that Trump was contemplating a new military action against Iran. Prices reached an unprecedented high of over $119 per ounce, as the white metal experienced significant demand driven by a preference for safe-haven assets. A vigorous rally in metal prices exhibited limited indications of deceleration, driven by escalating global geopolitical tensions that intensified the demand for tangible assets and safe havens. The depreciation of the dollar, coupled with ambiguity surrounding U.S. policy, contributed to upward momentum, as copper prices reached an unprecedented peak on Thursday. “Gold is no longer merely a crisis hedge or an inflation hedge; it is increasingly regarded as a neutral and dependable store of value asset that also offers diversification across a broader spectrum of macroeconomic regimes,” analysts noted in a report. “This elucidates the rationale behind the tendency for pullbacks to be shallow and well-supported,” they added.