(Bloomberg) – U.S. stocks were poised to rise on Friday as tech giants Meta Platforms and Amazon.com reported big earnings and investors awaited jobs data expected to support support for interest rate cuts. Ta.
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S&P 500 futures rose 0.6% and the tech-heavy Nasdaq 100 rose 1% after the index rose more than 1% on Thursday. Meta soared 17% in premarket trading, while Amazon rallied 7.1% after the tech giant smashed quarterly profit estimates. The companies’ results boosted their social media and e-commerce peers, with Snap Inc. up 6.8% and Shopify Inc. up 4.8%. Apple fell after showing weak performance in China.
There was more talk about Big Oil’s results on Friday, with shares of Chevron Corp. and Exxon Mobil Corp. rising after both companies beat profit estimates.
Investors will be looking at the upcoming monthly U.S. jobs report for further cooling in the labor market that could prompt the Federal Reserve to ease policy. Thursday’s numbers showed an increase in jobless claims, but Friday’s announcement said employers are expected to add workers at a slower pace in January. Economists at Bloomberg expect the unemployment rate to rise to 3.8% from 3.7% in December.
“A move closer to 4% could change the market’s view of when the Fed will start cutting rates,” economists at Rand Merchant Bank in Johannesburg said in a note to clients.
In Europe, the Stoxx 600 index was also supported by positive earnings news, with Mercedes-Benz Group AG’s share price rising by up to 3.3% and Dansk Bank A/S rising by 6.7%. The picture was more complicated in Asia, where China’s main benchmarks avoided sharp declines in a volatile session. A broader look at stocks in the region rose 0.7%.
The dollar weakened slightly and is expected to decline for the week. U.S. Treasuries were firm after a rally on Thursday as concerns about the health of U.S. regional banks reignited and traders were pricing in an accelerating pace of Fed interest rate cuts.
Investors will continue to closely track developments in these small financial institutions as the sector’s indexes suffer their worst week since the aftermath of last May’s banking crisis. New York Community Bancorp plunged 45% on Wednesday after shocking investors by cutting its dividend, posting a quarterly loss and increasing loan loss provisions on its commercial real estate exposure.
Meanwhile, as investors flock to tech stocks, Bank of America strategists say the market is assuming the economy will remain strong despite monetary tightening, drawing parallels to the 1999 bubble. He said he sees it as possible.
Lower yields pushed the Nasdaq higher in the fourth quarter, but both have turned higher over the past four weeks. BofA strategists led by Michael Hartnett wrote in a note that such price movements typically only occur after recessions, such as the dot-com bubble of 2009 and the beginning of this century.
Hartnett’s view of the growing dominance of tech stocks is similar to a warning earlier this week by JPMorgan Chase & Co. strategists that the U.S. stock market is increasingly resembling the dot-com bubble. .
Elsewhere, oil prices are heading for their biggest weekly loss since early November as negotiations progress on an agreement to suspend the Israeli-Hamas war that could be a key step towards ending the conflict. Gold posted its biggest weekly gain since early December, with lower US Treasury yields supporting gold amid concerns about US regional banks.
The main movements in the market are:
As of 6:44 a.m. New York time, S&P 500 futures were up 0.6%.
Nasdaq 100 futures rise 1%
Dow Jones Industrial Average futures little changed
Stoxx European 600 rose 0.7%
MSCI World Index rose 0.3%
The Bloomberg Dollar Spot Index fell 0.1%.
The euro rose 0.1% to $1.0883.
Sterling rose 0.1% to $1.2761.
The Japanese yen remained almost unchanged at 146.48 yen to the dollar.
Bitcoin rose 0.2% to $43,149.94
Ether rose 0.5% to $2,316.05
The 10-year government bond yield was almost unchanged at 3.88%.
German 10-year bond yield remains unchanged at 2.16%
The UK 10-year bond yield rose 5 basis points to 3.80%.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Richard Henderson and Chiranjivi Chakraborty.
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