US stock futures displayed upward momentum on Friday, with positive earnings reports from Amazon and Intel alleviating concerns regarding the technology sector. This surge came just ahead of the release of a highly anticipated US inflation report.
Nasdaq 100 futures led the gains, rising by more than 0.9%. The tech stocks had experienced a significant decline the previous day. S&P 500 futures also made a notable move, increasing by approximately 0.5%, while Dow Jones Industrial Average futures edged up by around 0.1%.
These positive shifts suggest a more optimistic start to the final session of a challenging week. During the week, the S&P 500 had come close to entering correction territory, following a sell-off fueled by mixed earnings reports from major tech companies.
Amazon’s financial results, reported late on Thursday, contributed to the improvement in market sentiment. The company’s CEO delivered a positive outlook regarding the potential impact of artificial intelligence, resulting in a 6% increase in pre-market share value. Additionally, chipmaker Intel’s stock experienced gains following favorable third-quarter earnings. In the spotlight for Friday’s trading are Exxon Mobil and Chevron.
However, the spotlight will primarily be on the update to the personal consumption expenditures index, which serves as the Federal Reserve’s preferred gauge of inflation. This data release is anticipated to show a cooling in core personal consumption expenditures, although it is expected to remain above the inflation target set by policymakers. The uncertainty surrounding the possibility of further interest rate hikes by the Federal Reserve this year has weighed on the stock market. With the central bank’s next meeting scheduled for November 1, the window for a decision is narrowing.
Despite a robust recent US GDP reading, which indicated that the Federal Reserve’s stance of maintaining higher interest rates hasn’t deterred American consumers, some analysts remain skeptical about the sustainability of this resilience. This skepticism arises due to recurring cautious statements in companies’ outlooks alongside their earnings reports.
