By Liz Moyer
Investing.com -- Stocks surged on Wednesday after the Federal Reserve moved rates higher by three-quarters of a point, pushing the Nasdaq 4% higher.
Big tech stocks have been hammered in recent weeks by Fed rate hikes and inflation, but now that earnings are rolling out, investors are breathing easier. Microsoft Corporation (NASDAQ:MSFT) shares rose after it reported solid results in cloud computing, while Alphabet (NASDAQ:GOOGL)'s (NASDAQ:GOOG) advertising business wasn't as bad as feared.
Fed Chair Jerome Powell told reporters after the Fed's decision was announced that he didn't believe the economy was in a recession, despite evidence it was softening. His words echo that of President Joe Biden and Treasury Secretary Janet Yellen. The proof will be in the pudding on Thursday, when the preliminary print on second quarter gross domestic product is released. Most consider it to be a recession when the economy retracts two quarters in a row, and the first quarter GDP was a contraction.
Powell also told reporters on Wednesday that the lack of clear visibility into the future of the economy means the Fed is only able to provide solid guidance on the direction of policy on a meeting by meeting basis.
Here are three things that could affect markets tomorrow:
1. Apple earnings
Apple Inc (NASDAQ:AAPL) is expected to report earnings per share of $1.16 on revenue of $82.6 billion.
2. Amazon.com earnings
E-commerce giant Amazon.com Inc (NASDAQ:AMZN) is expected to report EPS of 13 cents on $119.2 billion in revenue.
3. Mastercard earnings
Mastercard Inc (NYSE:MA) is expected to report EPS of $2.35 on revenue of $5.3 billion.