-- U.S. stock index futures rose sharply in evening deals on Thursday, with gains heavily biased towards technology stocks following stronger-than-expected earnings from Microsoft and Alphabet. 

While caution over U.S. inflation and interest rates remained in play, the positive earnings ramped up hopes that demand for artificial intelligence will keep supporting tech earnings in the coming quarter. 

were the best performers among their peers, rising 1.2% to 17,778.75 points, while rose 0.8% to 5,123.25 points by 18:49 ET (22:49 GMT). Gains in were much more muted, with futures up 0.1% at 38,323.0 points.

Microsoft surges, Alphabet hits record high on strong Q1 earnings 

Class A shares of Google parent Alphabet Inc (NASDAQ:) rallied about 12% in after-hours trade, hitting an indicated record high of about $174.70.

The firm clocked stronger-than-expected first-quarter earnings on robust demand for its new AI offerings. Alphabet also declared its first ever dividend, of 20 cents per share. 

Microsoft Corporation (NASDAQ:) shares rose 4.6% to $417.24, as strong demand for AI products also helped the firm clock stronger-than-expected first-quarter earnings. 

Both stocks rebounded from a negative session on Thursday, and also helped inspire gains across the tech sector. 

AI darling NVIDIA Corporation (NASDAQ:) added 2.4%, extending a recent rebound even as recent earnings from other chipmakers raised doubts over just how much the AI industry would support chip demand. 

Facebook owner Meta Platforms Inc (NASDAQ:) saw some relief in aftermarket trade, rising 0.7% after tumbling 10% during the session. Meta’s earnings had beat expectations, but its revenue outlook had disappointed as the firm undertook more costs related to AI. 

Wall St nurses losses, PCE data awaited for more rate cues 

Wall Street indexes closed lower on Thursday after softer-than-expected data pointed to some cooling in the economy amid high interest rates and sticky inflation.

But the , which is a measure of overall inflation, read higher than expected for the quarter. This furthered already prevalent concerns that the Federal Reserve will keep interest rates higher for longer to curb sticky inflation. 

The GDP data put upcoming data, due later on Friday, squarely in focus. PCE data is the Federal Reserve’s preferred inflation gauge, and is likely to factor into the central bank’s stance on inflation.

The fell 0.5% on Thursday to 5,048.42 points, while the closed down 0.6% at 15,611.76 points. The was the worst hit by inflation jitters, falling nearly 1% to 38,085.89 points.

Despite seeing some respite this week, Wall Street indexes were still nursing a weak start to the second quarter, as traders steadily priced out expectations of early interest rate cuts by the Fed. 

Some mixed earnings reports also weighed.

Snap surges on strong earnings, Intel slides 

Shares of (NYSE:) rallied over 25% in aftermarket trade after the social media firm clocked stronger-than-expected first-quarter earnings, while also offering an upbeat outlook. 

Other social media stocks also rose after the U.S. pushed forward a bill that gave video streaming app TikTok a year to either divest itself or leave U.S. markets. 

On the other hand, Intel Corporation (NASDAQ:) slid 8% in aftermarket trade after the chipmaker clocked disappointing quarterly earnings and offered a middling forecast for the second quarter.