Stock futures showed a positive trend as the financial markets responded to comments from John Williams, the president of the New York Federal Reserve, who suggested that there may be room for the central bank to reduce its benchmark interest rate “in the near term.” This comment has revived hopes among investors that the Federal Reserve could soon implement rate cuts, despite prior skepticism regarding anticipated cuts in December. Futures associated with the Dow Jones Industrial Average, S&P 500, and the tech-heavy Nasdaq were all up by approximately 0.5%, reversing earlier declines seen in premarket trading. The major stock indexes had endured considerable losses on Thursday amid ongoing apprehensions about the sustainability of the AI sector, placing both the S&P 500 and Nasdaq on track for their most significant weekly losses since April. The yield on the 10-year Treasury note, a critical indicator influencing borrowing costs for various consumer loans, recently stood at 4.07%, down from 4.10% at the previous day’s close. Gold futures remained stable, trading around $4,060 an ounce.
In the cryptocurrency realm, Bitcoin has continued its descent, extending a two-week slide that has led it to its lowest levels since April. Recently trading at $83,500, the digital currency experienced fluctuations, having dipped to an earlier low of $80,500 yet recovering slightly from an overnight high of approximately $88,000. This downturn reflects a broader reevaluation of investor risk appetite amidst ongoing market volatility. Crypto-related stocks, including those of MicroStrategy (MSTR), the largest corporate holder of Bitcoin, fell about 2%, alongside declines for crypto mining company Marathon Digital (MARA) and exchange platform Coinbase (COIN). Since November 10, Bitcoin has been in a slump, witnessing only two positive trading sessions, with its last closing day tallying near $106,000.
Nvidia’s stock fluctuated this morning following a sharp decline the previous day, despite the tech company exceeding earnings expectations. Analysts offered optimistic evaluations post-earnings, yet fears surrounding an AI bubble have persisted. Analysts noted that while Nvidia’s impressive earnings should alleviate some concerns, the crucial issue remains whether the firms purchasing Nvidia’s chips can realize returns on their substantial AI investments. In premarket trading, Nvidia shares showed an uptick of about 1%, recovering from deeper losses earlier in the trading session.
Meanwhile, Gap Inc. experienced a surge in its stock price following the clothing retailer’s announcement of stronger-than-expected third-quarter results. The company reported sales of $3.94 billion with earnings of 62 cents per share, both figures surpassing analysts’ projections. Comparable store sales increased by 5% year-over-year, marking the seventh consecutive quarter of growth. CEO Richard Dickson highlighted the positive momentum across the company’s main brands—Gap, Old Navy, and Banana Republic—as they approach the holiday season. This led to an adjustment of the sales outlook to the higher end of previous estimates and an increase in the forecast for operating profit margin. Gap shares rose by approximately 7% in premarket trading.
In the technology sector, Intuit reported robust financial results that exceeded analysts’ expectations, contributing to a rise in its stock. For the first quarter of fiscal 2026, Intuit disclosed revenue of $3.89 billion and adjusted earnings of $3.34 per share, which was 25 cents more than anticipated. Intuit’s CFO indicated that the adoption of the company’s AI features is positively impacting sales and improving automation. The firm also announced a recent partnership with OpenAI aimed at integrating TurboTax into ChatGPT, which is expected to provide financial and tax guidance to users. Intuit’s shares rose nearly 4% in recent trading sessions.
