The major index futures indicate a higher opening on Friday, suggesting that stocks are poised to rebound after experiencing downward pressure in the preceding session. Early buying interest may be generated in reaction to upbeat earnings news from big-name companies such as Amazon and Apple. Amazon’s shares are experiencing a notable increase of 13.0 percent in pre-market trading following the company’s announcement of third quarter results that exceeded expectations, driven by a significant rise in cloud computing revenue. Manufacturer of the iPhone Apple is experiencing significant pre-market strength following the release of its fiscal fourth quarter results, which surpassed analyst expectations, alongside a positive outlook for the upcoming quarter. Shares of Netflix may also move to the upside after the streaming giant announced its board of directors has approved a ten-for-one stock split. Conversely, shares of Exxon Mobil may experience initial weakness following the energy giant’s report of third quarter earnings that declined year-over-year as a result of lower oil prices.
Equities experienced a predominantly downward trajectory throughout Thursday’s trading session, as the Dow fell into negative territory alongside the Nasdaq and the S&P 500, despite exhibiting some initial strength earlier in the day. Following the conclusion of Wednesday’s trading at an unprecedented closing high, the tech-centric Nasdaq experienced a significant decline, falling by 377.33 points or 1.6 percent to 23,581.14. The S&P 500 declined by 68.25 points, representing a decrease of 1.0 percent, settling at 6,822.34. In contrast, the Dow experienced a more subdued drop, falling 109.88 points or 0.2 percent to reach 47,522.12. The weakness that emerged on Wall Street was accompanied by a negative response to earnings announcements from major technology firms Meta Platforms and Microsoft.
Meta, the parent company of Facebook, experienced a decline of 11.3 percent, reaching a five-month closing low. This drop followed the release of third quarter results that exceeded expectations, yet the company projected a rise in expenditures related to artificial intelligence. Software giant Microsoft experienced a decline of 2.9 percent following the release of its fiscal first quarter results, which surpassed estimates. However, the company indicated that capital spending growth is set to accelerate in this fiscal year. Conversely, shares of Alphabet surged by 2.5 percent following the release of third quarter results that exceeded expectations on both revenue and earnings fronts. Drug giant Eli Lilly surged by 3.8 percent after reporting better than expected third quarter results and boosting its full-year revenue guidance.
In the interim, market participants appeared to dismiss the ostensibly favorable outcomes from President Donald Trump’s much-anticipated discussions with his Chinese counterpart, Xi Jinping. The United States has consented to lower tariffs associated with fentanyl imports from China to 10 percent, down from the previous rate of 20 percent, while China has committed to reinstating its purchases of U.S. soybeans. China will suspend the implementation of new export controls on rare earths, while the U.S. will suspend its 50 percent penetration rule on export controls in return. Software stocks experienced a significant decline, influenced by Microsoft’s downturn, resulting in a 2.2 percent drop in the Dow Jones U.S. Software Index. Significant weakness was also observed in the telecom sector, evidenced by the 2.0 percent decline recorded by the NYSE Arca North American Telecom Index. Steel, computer hardware, retail, and semiconductor stocks experienced downward pressure during the day, whereas gold networking and pharmaceutical stocks delivered robust performances.