S&P 500 futures pop in overnight trading, boosted by Alphabet and Microsoft: Live updates

Stock futures rose in overnight trading Thursday as Big Tech names Alphabet and Microsoft saw shares rally on strong earnings.

Futures on the Dow Jones Industrial Average gained 60 points. S&P 500 futures climbed 0.9% and Nasdaq 100 futures popped 1.2%.

Shares of Alphabet soared about 15% in extended trading following a better-than-expected first-quarter earnings The company also authorized its first ever dividend, as well as a $70 billion buyback.

Microsoft saw shares climb 5% after the software maker posted fiscal third-quarter results that surpassed Wall Street's expectations. 

The strength in these megacap stocks could give the major averages a boost after a losing day on Wall Street. The blue-chip Dow slid 375 points Thursday, while the S&P 500 and the Nasdaq Composite dropped 0.5% and 0.6%, respectively.

Thursday's sell-off was triggered by new U.S. economic data that showed a sharp slowdown in growth and pointed to persistent inflation. Gross domestic product expanded by 1.6% in the first quarter, compared to a Dow Jones forecast of 2.4%. Meanwhile, the personal consumption expenditures price index for the period rose at a 3.4% pace, well above the previous quarter's 1.8% increase. 

"The Fed will be more concerned by inflation running above their target in the first quarter than slower growth," said Bill Adams, chief economist at Comerica Bank. "The Fed is likely to slow the pace of their balance sheet runoffs at one of the next few meetings, but wait until September to start reducing interest rates."

Still, major averages are on track for a winning week. The S&P 500 is up 1.6% week to date, on pace to break a three-week losing streak. The Nasdaq has gained more than 2%, headed for its first positive week in five. The