S&P 500 futures edged up on Wednesday, buoyed by Alphabet’s stronger-than-expected earnings report, as investors prepared for more earnings releases from major tech firms and awaited new US economic growth data, CNBC reports.
Futures tied to the S&P 500 rose 0.1%, and Nasdaq 100 futures also climbed following Alphabet’s report, while Dow Jones Industrial Average futures dipped by 81 points, or 0.2%.
Alphabet, Google’s parent company, saw its shares surge over 5% in extended trading after surpassing analysts’ expectations. The company reported notable growth in its cloud business, marking a promising start to a busy week for technology giants’ earnings. However, semiconductor firm AMD’s premarket shares slid 8% due to revenue guidance for the fourth quarter that fell short of investor hopes.
The week remains packed with earnings from prominent tech players. Microsoft and Meta Platforms are set to report on Wednesday, while Apple and Amazon will follow on Thursday.
Beyond earnings, attention is on a preliminary reading of the US gross domestic product (GDP), expected to indicate a 3.1% annualized growth rate for the third quarter. This figure, if accurate, would mark a slight increase from the prior period and represent the 10th consecutive quarter of growth. Additionally, the GDP report is anticipated to show inflation moving toward or possibly below the Federal Reserve’s 2% target.
The S&P 500 and Nasdaq both closed Tuesday on a positive note as investors rallied ahead of this week’s tech earnings, though the Dow closed slightly lower.
“Growth-oriented stocks, like the Nasdaq 100, returned to leadership,” noted Rob Haworth, senior investment strategist at US Bank Asset Management.
Haworth highlighted the importance of strong tech earnings to support ongoing investments in artificial intelligence and other productivity tools.
