(For a Reuters live blog on U.S., UK and European stock markets, click (LIVE/) or type LIVE/ in a news window.)Futures up: Dow 0.09%, S&amp;P 500 0.19%, Nasdaq 0.26%Jan 29 (Reuters) - U.S. stock index futures edged higher on Thursday, as investors weighed another surge in AI-related spending from the tech mega-caps and the Federal Reserve held rates steady as expected.Meta (META.O) jumped 7.9% in premarket trading as the social media giant paired an upbeat revenue forecast with a 73% jump in this year’s capex budget. Tesla (TSLA.O) rose 2.9% after outlining plans to more than double capital expenditure to a record level.Microsoft (MSFT.O) , however, dropped 6.4% as its cloud revenue failed to impress and stoked fears the hefty outlays behind its OpenAI alliance are not translating into monetization fast enough.The latest results from three of the so-called “Magnificent Seven” companies suggest investors are willing to overlook massive AI expenditures so long as they yield tangible returns.The group, which represents about one-third of the S&amp;P 500’s market cap, has driven a sustained rally in U.S. equities, and continues to trade at elevated valuation multiples.“Traders are no longer rewarding the biggest spenders, and Microsoft’s elevated capex appears to have spooked them, leaving doubts that the continued spend will deliver a clear path to profit,” said Jake Behan, head of capital markets at Direxion.“Capex remains the market’s central concern for hyperscalers, as trader focus shifts from growth optics to the timing and payoff of AI investment.”At 05:21 a.m. ET, Dow E-minis (YMcv1) were up 42 points, or 0.09%, S&amp;P 500 E-minis (EScv1) were up 13.5 points, or 0.19%, and Nasdaq 100 E-minis (NQcv1) were up 67.5 points, or 0.26%Apple (AAPL.O) rose 0.5% ahead its results after the bell.Bellwether IBM (IBM.N) jumped 8.3% after beating estimates in its fourth-quarter earnings.<h3>EXPECTED FED DECISION</h3>The U.S. central bank held rates steady at the 3.5%–3.75% range in a widely expected move.The S&amp;P 500 and the Dow closed virtually unchanged, while the Nasdaq managed only a small uptick.Chair Jerome Powell said the Fed would be data-dependent, and the upside risks to inflation and downside risks to employment had diminished.Traders kept their rate-cut expectations intact, continuing to price the first reduction for June, according to CME’s FedWatch tool.U.S. President Donald Trump and Democrat Senator Chuck Schumer moved to reach an agreement to negotiate new restrictions on federal immigration agents, potentially averting a government shutdown, the New York Times reported.The funding deadline is Friday midnight.Among other stock moves, rare-earth miners slid following a report the Trump Administration would step back from critical mineral price floors.USA Rare Earth (USAR.O) fell 10%, MP Materials (MP.N) was down 5.7%, while Critical Metals (CRML.O) and United States Antimony (UAMY.A) dropped 8% each.

Meta Q4 Earnings

U.S. stock index futures rose slightly as investors reacted to Big Tech earnings and the Federal Reserve's decision to maintain interest rates. Meta's shares surged 7.9% after a positive revenue forecast, while Tesla gained 2.9% due to increased capital expenditure plans. Conversely, Microsoft fell 6.4% amid concerns over its cloud revenue and high spending on AI. The Fed's steady rates and data-dependent approach influenced market sentiment, with traders anticipating potential rate cuts by June. Rare-earth miners declined following reports of changes in mineral price policies.

- U.S. stock index futures increased slightly as investors reacted to AI spending from tech giants and the Federal Reserve's decision to maintain interest rates.  
- Notable movements included a 7.9% rise in Meta's stock and an 8.3% jump in IBM’s shares, while Microsoft saw a drop due to disappointing cloud revenue.  
- The Fed maintained rates at 3.5%–3.75%, and traders anticipate the first rate cut by June, with ongoing discussions about federal immigration restrictions amid concerns about a potential government shutdown.

US STOCKS-US stock index futures edge up as markets digest Big Tech earnings