Market Analysis

As massive tech results approach, US stock futures remain stable

Amos Simanungkalit · 25 Oct9.9K Views

U.S. stock index futures showed minimal movement during Thursday's evening trading, as investors braced for a series of major technology earnings scheduled for the upcoming week.

While Wall Street indices experienced gains, fueled by positive earnings from Tesla Inc (NASDAQ), markets remained under pressure for the week, driven by lingering concerns surrounding the presidential election and expectations of slower interest rate cuts.

Risk sentiment was further dampened by fears of escalating geopolitical tensions in the Middle East, with Israel reportedly preparing for a military strike against Iran.

As of 19:30 ET (23:30 GMT), S&P 500 Futures held steady at 5,847.25 points, while Nasdaq 100 Futures slipped 0.1% to 20,365.75 points. Dow Jones Futures remained flat at 42,591.0 points.

Tech Earnings on the Horizon
Next week’s third-quarter earnings season is set to peak, with five of Wall Street’s “Magnificent Seven” expected to release their earnings reports.

Alphabet Inc (NASDAQ) will report on Tuesday, followed by Meta Platforms Inc (NASDAQ) and Microsoft Corporation (NASDAQ) on Wednesday. Apple Inc (NASDAQ) and Amazon.com Inc (NASDAQ) will then release their results on Thursday.

These five firms represent a significant portion of Wall Street’s total market capitalization, and their earnings reports are expected to provide crucial insight into broader market trends. Key attention will be on how much artificial intelligence (AI) has driven earnings, particularly given the increased capital spending in this rapidly growing sector.

Earlier in the week, Tesla’s strong earnings sparked optimism, with shares surging nearly 22% on Thursday before dipping by 1% in after-hours trading.

In addition to the Magnificent Seven, several other major players are set to report earnings next week, including Advanced Micro Devices Inc (NASDAQ), Caterpillar Inc (NYSE), Visa Inc (NYSE), Ford Motor Company (NYSE), and Uber Technologies Inc (NYSE). Investors will closely monitor whether these companies have managed to navigate challenges from persistent inflation and high interest rates, following a mixed set of earnings reports in the prior week.

Wall Street Struggles with Weekly Losses
Despite Thursday’s gains, Wall Street indices still faced weekly declines, with losses ranging between 0.4% and 2.1%. Investor appetite for risk remained weak, partly due to profit-taking after stocks hit record highs earlier in October.

On Thursday, the S&P 500 inched up 0.2% to 5,809.86 points, while the NASDAQ Composite rose 0.8% to 18,413.91 points. The Dow Jones Industrial Average lagged behind, slipping 0.3% to 42,374.36 points, marking it as the weakest performer of the week.

Rising Treasury yields also unsettled the markets, as investors adjusted to expectations of a more gradual pace of rate cuts from the Federal Reserve. Additionally, increased chances of a Donald Trump victory over Kamala Harris in the upcoming presidential election led to concerns about inflationary policies in the U.S. going forward.