New York, NY – The stock market showed signs of recovery as S&P 500 futures rose during overnight trading due to strong earnings reports from tech giants Alphabet and Microsoft. Futures tied to the broad market index climbed 0.7%, while Nasdaq 100 futures surged by 1%, and Dow Jones Industrial Average futures also saw gains of 0.08%.

Alphabet’s stock soared by 11% in extended trading following better-than-expected first-quarter earnings, with the company also announcing its first dividend and a $70 billion buyback program. Microsoft saw its shares rise by 4% after reporting fiscal third-quarter results that surpassed expectations.

The positive performance of these mega-cap tech stocks is expected to boost the major averages after a downturn on Wall Street, where the Dow declined by 375 points. The S&P 500 and Nasdaq Composite also dropped by 0.5% and 0.6% respectively.

The market sell-off on Thursday was triggered by new U.S. economic data indicating a significant slowdown in growth and persistent inflation. The first quarter saw GDP expand by 1.6%, lower than the Dow Jones forecast of 2.4%, while the personal consumption expenditures price index rose by 3.4%, well above the previous quarter’s increase.

Despite the recent market volatility, major averages are on track for a winning week, with the S&P 500 up 1.6% week-to-date and the Nasdaq gaining over 2%. Investors are eagerly awaiting earnings reports from energy giants Chevron and Exxon Mobil, as well as the release of March’s PCE reading, which is closely monitored by the Federal Reserve.

Looking ahead, investors are optimistic about the overall performance of the stock market, with many S&P 500 companies surpassing earnings expectations. The focus remains on economic indicators and corporate earnings as market participants navigate through ongoing volatility.