US Tech Futures Slide as Fed Holds Rates, Alphabet Drops on Earnings Miss

US equity futures pointed to a weaker open on Thursday, with the tech-heavy Nasdaq leading declines in premarket trade as Alphabet's shares slumped following a disappointing earnings report. The downturn came as investors reacted to the Federal Reserve's latest policy decision to maintain interest rates at current levels, while anticipating more major technology earnings announcements after the closing bell.

Federal Reserve Maintains Rates, Adjusts Meeting Structure

On Wednesday, the Federal Reserve left its target range for the federal funds rate unchanged at 3.75% to 4%. The decision was made in a split vote, according to Yahoo Finance. Chair Kevin Warsh revealed that starting in 2028, the number of rate-setting meetings will be reduced from eight to six per year, allowing for two additional strategy meetings. These changes are designed to provide more time for discussion on policy strategy.

Tech Stocks Drive Futures Lower After Alphabet Miss, Eyes on Amazon and Intel

Dow Jones Industrial Average futures were down 0.2%, S&P 500 futures dropped 0.3%, and Nasdaq futures fell 1.1% in premarket trading. Alphabet (GOOG, GOOGL) shares declined by more than 11% after posting third-quarter earnings that unexpectedly fell from a year earlier and missed analysts’ revenue estimates. This performance contributed to the broader weakness across index futures.

Eli Lilly (LLY) reported higher third-quarter non-GAAP earnings and revenue. Investor attention remains on upcoming results from Amazon (AMZN) and Intel (INTC), both scheduled to release their third-quarter earnings after Thursday’s market close. FactSet surveys anticipate Amazon to post earnings of $1.97 per share on revenue of $202.22 billion, while Intel is expected to report earnings of $0.41 per share on revenue of $16.54 billion.

Market Monitors Economic Data and Oil Moves

A series of key US economic data releases is expected Thursday morning. Initial jobless claims for the week ended October 24 are projected to rise to 198,000, up from 197,750 in the prior week, according to estimates compiled by Bloomberg. The September core personal consumption expenditures (PCE) price index, the preferred inflation measure for the Federal Reserve, is expected to climb 0.3% month over month, following a 0.2% gain in August. The advance estimate for third-quarter GDP stands at 3.2%, compared to the previous quarter’s 2.2% increase. Personal income for September is also anticipated to rise by 0.3%, accelerating from a 0.2% gain the month before.

Meanwhile, oil prices edged lower. North Sea Brent crude for front-month delivery slipped 0.9% to $110.60 per barrel, and US West Texas Intermediate crude dropped 0.8% to $101.98 per barrel, according to Yahoo Finance.

Amazon and Intel Results Due Thursday

As the market processes Alphabet’s disappointing results and the Federal Reserve’s unchanged rate stance, investor focus remains on additional tech earnings from Amazon and Intel later Thursday. Key economic releases, including inflation and jobs data, are also in view and could further influence expectations for monetary policy as the year advances.

Futures activity, earnings reports, and macroeconomic data will be watched closely for indications of near-term direction in both technology stocks and the broader market, especially as the Federal Reserve’s new meeting structure is set for 2028 and policy discussions remain a central theme.