US Stock Futures Rise Ahead of Tech Earnings and Election
U.S. stock index futures rose on Monday as investors prepared for a significant week featuring major corporate earnings reports and the presidential election on November 5. Dow E-minis gained 186 points or 0.44%, S&P 500 E-minis rose by 30 points or 0.51%, and Nasdaq 100 E-minis increased by 134.25 points or 0.65%.
Investor focus will be on the upcoming week when approximately 169 S&P 500 companies are set to report their earnings. In particular, attention is drawn to the "Magnificent Seven," a group of major technology companies that have significantly influenced Wall Street's performance this year. Following a positive earnings report from Tesla, there is optimism that other big tech firms will meet high investor expectations.
In pre-market trading, shares of Alphabet (NASDAQ:GOOGL) rose 1.8%, Meta Platforms (NASDAQ:META) by 1.1%, Microsoft (NASDAQ:MSFT) by 0.8%, Apple (NASDAQ:AAPL) by 0.2%, and Amazon (NASDAQ:AMZN.com) by 0.8%. These companies collectively make up about 23% of the S&P 500 index, and the market's reaction to these earnings will play a crucial role in determining the direction of the stock index.
Nvidia shares rose 1.1%, briefly surpassing Apple on Friday to become the world's most valuable company. Meanwhile, the market reacted calmly to Israel's measured response to an Iranian missile attack in early October; Israel targeted missile factories near Tehran instead of refineries or nuclear facilities.
Last week's rise in yields ended the six-week streak of gains for the S&P 500 and Dow Jones Industrial Average, negatively impacting stocks. This shift occurred as investors anticipated that the Federal Reserve would adopt a less supportive stance due to signs of persistent strength in the U.S. economy.
Key economic data to be released, including the Personal Consumption Expenditures index, third-quarter GDP figures, and non-farm payroll report, will be critical for assessing the Fed's direction. Investors expect the Fed to implement a 25 basis point rate cut at its next meeting.
The presidential election on November 5 is also a focal point, with markets currently pricing in the possibility of a second term for President Donald Trump. Despite a rise in the 10-year Treasury yield to 4.292%, markets remained vibrant on Monday.
Futures for the small-cap sensitive Russell 2000 index rose by 0.5%. Boeing shares increased by 1% following the announcement of a stock offering that could raise up to $19 billion as an effort to strengthen its finances amidst an ongoing workers' strike. Conversely, shares of oil companies fell as crude oil prices decreased by 5%; Exxon (NYSE:XOM) lost 2% and Occidental Petroleum dropped by 2.4%.