U.S. stock futures pointed higher on Friday, suggesting Wall Street may bounce back after Thursday’s selloff, as investors reacted positively to strong quarterly results from major tech names Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL).
Early optimism is being fueled by upbeat earnings reports that reignited confidence in the resilience of the tech sector.
Amazon shares surged 13% in premarket trading, after the e-commerce and cloud leader posted third-quarter earnings that topped expectations, helped by a sharp rise in cloud-computing revenue.
Apple stock also traded higher before the opening bell after the iPhone maker’s fiscal fourth-quarter results beat analyst forecasts, with executives projecting strong demand heading into the holiday season.
Meanwhile, Netflix (NASDAQ:NFLX) shares could also see gains after the streaming giant announced its board of directors had approved a 10-for-1 stock split, signaling confidence in future growth.
In contrast, Exxon Mobil (NYSE:XOM) shares may come under pressure after the oil major reported lower third-quarter profits compared to last year, weighed down by weaker crude prices.
Thursday’s Weakness
Stocks closed mostly lower on Thursday, erasing early gains as the Dow, S&P 500, and Nasdaq all ended in negative territory. The Nasdaq tumbled 377.33 points, or 1.6%, to 23,581.14, while the S&P 500 fell 1% to 6,822.34. The Dow Jones Industrial Average slipped 0.2% to 47,522.12.
The downturn followed disappointing reactions to results from tech heavyweights Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT).
Meta plunged 11.3% to a five-month low despite reporting stronger-than-expected third-quarter earnings, as investors focused on its plans to increase AI-related spending. Microsoft also dropped 2.9% after topping profit forecasts but warning that capital expenditures would accelerate in the current fiscal year.
By contrast, Alphabet (NASDAQ:GOOGL) climbed 2.5% after its results exceeded expectations across both revenue and profit metrics, while Eli Lilly (NYSE:LLY) gained 3.8% on a strong earnings beat and upgraded full-year guidance.
Trade Developments and Sector Moves
Traders showed limited reaction to seemingly constructive developments from President Donald Trump’s meeting with Chinese President Xi Jinping, where both sides agreed to ease trade tensions. The U.S. reduced fentanyl-related tariffs on Chinese goods to 10% from 20%, while China resumed purchases of U.S. soybeans and temporarily lifted new export restrictions on rare earth minerals.
Still, weakness persisted across key sectors. Software stocks led losses, with the Dow Jones U.S. Software Index sliding 2.2% on Microsoft’s decline. Telecom shares also struggled, as the NYSE Arca North American Telecom Index dropped 2.0%.
Meanwhile, steel, computer hardware, retail, and semiconductor stocks retreated, while gold, networking, and pharmaceutical shares provided some resilience.
Overall, investors are now eyeing Friday’s session for a potential rebound, with Amazon and Apple’s strong earnings providing a much-needed boost to market confidence.