Stock futures rose on Sunday night as traders awaited the release of corporate earnings from major tech companies. Futures tied to the Dow Jones Industrial Average increased by 0.18%, while S&P 500 futures and Nasdaq 100 futures climbed by 0.23% and 0.15% respectively. These gains came after a challenging week for stocks, with concerns over higher interest rates causing all three major indexes to enter negative territory. The S&P 500 ended the week 2.4% lower, its first losing week in three, while the Dow Jones Industrial Average shed 1.6%, and the Nasdaq Composite slumped 3.2% for its second losing week in a row.
Furthermore, the benchmark 10-year U.S. Treasury yield climbed above the key 5% level on Thursday for the first time since July 2007. This increase followed Federal Reserve Chairman Jerome Powell’s hawkish messaging in a speech at the Economic Club of New York.
Now, as earnings season ramps up this week, investors are eagerly anticipating results from Alphabet, Amazon, Meta, and Microsoft, among others, as they provide crucial information for the stock market. Ryan Detrick, Chief Market Strategist at Carson Group, expressed optimism about the upcoming earnings reports, highlighting the strength of the economy and positive expectations for better-than-expected results.
In addition to corporate earnings, traders are also preparing for the release of key economic data this week. This includes Thursday’s third-quarter advance report for the U.S. gross domestic product and Friday’s release of the personal consumption expenditure, an inflation yardstick. Investors are concerned that if these reports show stronger-than-expected figures, it could keep the possibility of another rate hike this year on the table.
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