US stock futures showed positive movement Thursday night, buoyed by strong quarterly performances from tech giants Apple and Amazon, marking a significant week for the sector. S&P 500 futures advanced by 0.6%, while Nasdaq 100 futures surged by 1.1%. Futures tied to the Dow Jones Industrial Average, which tends to have a lower concentration of technology stocks, experienced a modest rise of approximately 0.1%.
In after-hours trading, Amazon’s stock jumped over 13% following its third-quarter earnings report, which surpassed Wall Street’s expectations. A significant contributor to this surge was Amazon Web Services, the company’s cloud service segment, which reported an impressive 20% increase in revenue. This growth hints at a revival in enterprise demand, even as the company faced challenges on a global scale in recent months.
Apple also garnered investor confidence, with its shares climbing as much as 3% after it posted stronger-than-expected earnings for its fiscal fourth quarter and offered optimistic guidance for the crucial December quarter. The positive sentiments continued with Netflix, which witnessed a rise of over 3% post-market after announcing plans for a 10-for-1 stock split, further amplifying the favorable market conditions in the tech sector.
These gains followed a challenging regular session on Wall Street, where the S&P 500 and Nasdaq Composite faced declines of 1% and 1.6%, respectively. This downturn was largely attributed to slump in shares of major players, such as Meta, Microsoft, and Nvidia, as investors expressed concerns over escalating AI infrastructure expenditures. Meta experienced its most significant single-day drop in three years, contributing to the broader market’s struggles.
In a development affecting global trade relations, President Trump and Chinese President Xi Jinping reached a temporary trade agreement during discussions in South Korea. This truce involves a 10% reduction in tariffs on Chinese goods related to fentanyl, alongside a freeze on China’s restrictions on rare-earth exports.
As market participants continue to navigate the implications of the Federal Reserve’s recent interest rate cut and the ensuing divisions regarding future monetary policy, they await comments from Fed officials scheduled for Friday, which could further influence market dynamics.
