S&P 500 and Nasdaq 100: Tech Stocks Lift Futures Ahead of Key Jobs Report

Nasdaq 100 Futures Advance Ahead of Key Jobs Report

Nasdaq 100 futures gained 0.4% Thursday night as traders reviewed several major earnings reports and anticipated Friday’s critical U.S. employment data. Futures on the Dow Jones Industrial Average also rose 152 points, or 0.4%, with S&P 500 futures edging up by the same margin.

Amazon and Intel Drive Nasdaq Futures Higher

Amazon’s shares surged more than 5% in after-hours trading, fueled by robust growth in its cloud and advertising segments that drove earnings beyond Wall Street’s expectations. This upbeat report provided much-needed momentum for Nasdaq 100 futures, lifting sentiment in the tech-heavy index. Similarly, Intel jumped over 5% following stronger-than-expected revenue and a positive outlook for the coming quarter.

These gains in Amazon and Intel follow a downbeat regular trading session, where disappointing post-earnings declines from tech giants Microsoft and Meta Platforms pulled down the Nasdaq Composite and S&P 500 indexes. Microsoft’s and Meta’s declines marked the worst session for both indexes since early September, and the Dow lost over 300 points, primarily due to declines in Microsoft, Intel, and Amazon.

Month-End Weakness amid Market Uncertainty

October closed on a low note, with the Dow Jones Industrial Average declining 1.3% and the S&P 500 and Nasdaq Composite losing 1% and 0.5%, respectively, on Thursday. This marked a downturn in what has otherwise been a strong year, with investor concerns rising over big tech earnings and potential risk aversion ahead of the upcoming election. Jay Hatfield, CIO of Infrastructure Capital Management, noted that Thursday’s decline was “mostly driven by tech” and suggested that investors may be positioning defensively.

Energy Sector Boosted by Strong Chevron and Exxon Earnings

Energy stocks also showed strength, with Chevron gaining more than 2% in premarket trading after reporting adjusted earnings of $2.51 per share on $50.67 billion in revenue, both beating Wall Street estimates. Chevron also made a record $7.7 billion in shareholder returns, adding to its appeal for investors seeking stable returns in volatile markets.

Similarly, Exxon Mobil shares rose over 1% in premarket after its earnings per share of $1.92 topped the anticipated $1.88. Exxon further announced a quarterly dividend increase, signaling strength in its cash flow and commitment to rewarding shareholders.

Outlook: Mixed Signals Amid Upcoming Employment Data

Traders are now closely watching the October jobs report, with economists forecasting a gain of 100,000 jobs—the smallest rise in nearly four years—and an unemployment rate of 4.1%. Should employment data come in weaker than expected, it may trigger concerns of a slowing economy, which could impact market sentiment. However, strong earnings from key tech and energy firms may help counterbalance these concerns.

In the short term, Nasdaq 100 futures could maintain an upward trend, fueled by Amazon and Intel’s strong performance, though caution may persist around Friday’s employment numbers. With mixed signals from earnings and macroeconomic data, traders are likely to keep a close watch on market reactions to employment figures before adjusting positions.