Tech Stocks May Help Lead Early Rebound On Wall Street
(RTTNews) - After coming under pressure over the course of the previous session, stocks may move back to the upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
Technology stocks may help lead an early rebound on Wall Street following yesterday's sell-off, as reflected by the 0.7 percent advance by the tech-heavy Nasdaq 100 futures.
Reports OpenAI's annualized revenue came in below estimates weighed on the sector on Thursday, although continued optimism about the AI trade may lead to a recovery.
A pullback by the price of crude oil may also contribute to early strength, although a rebound by treasury yields may keep buying interest somewhat subdued.
Traders may also be reluctant to make significant moves ahead of next week's release of key inflation data along with the start of earnings season.
The Labor Department is scheduled to release reports on consumer and producer inflation next week, while financial giants Citigroup (C), JPMorgan Chase (JPM), Wells Fargo (WFC) and Bank of America (BAC) are among the companies due to report their quarterly results.
"Strong earnings combined with moderating inflation would offer the most supportive backdrop for equities," said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, "Conversely, persistent price pressures alongside disappointing corporate guidance could expose the vulnerability of a market increasingly dependent on a relatively small group of technology companies to sustain its rally."
Not long after the start of trading, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of October. The consumer sentiment index is expected to slip to 47.6 in October after falling to 48.1 in September.
Stocks moved mostly lower during trading on Thursday, adding to the modest losses posted in the previous session. The tech-heavy Nasdaq showed a notable move to the downside, pulling back further off the record closing high set on Tuesday.
The Nasdaq ended the day off its lows of the session but still slumped 345.35 points or 1.3 percent to 27,193.34. The S&P 500 also fell 36.41 points or 0.5 percent to 7,765.36, although the narrower Dow bucked the downtrend and inched up 51.77 points or 0.1 percent to 51,231.64.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday. Hong Kong's Hang Seng Index jumped by 1.8 percent and Australia's S&P/ASX 200 Index climbed by 0.6 percent, although Japan's Nikkei 225 Index edged slightly lower.
The major European markets have also shown strong moves to the upside on the day. While the German DAX Index is up by 1.3 percent, the U.K.'s FTSE 100 Index is up by 1.2 percent and the French CAC 40 Index is up by 1 percent.
In commodities trading, crude oil futures are falling $0.56 to $90.93 a barrel after spiking $3.21 to $91.49 a barrel on Thursday. Meanwhile, after rising $16.30 to $4,157 an ounce in the previous session, gold futures are jumping $48.30 to $4,205.30 an ounce.
On the currency front, the U.S. dollar is trading at 158.22 yen versus the 157.86 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1197 compared to yesterday's $1.1209.
