(Reuters) – U.S. stock index futures climbed on Friday as robust forecasts from Amazon.com and Intel along with a pullback in Treasury yields lifted megacaps, while investors awaited a key inflation data during the day.
Amazon.com gained 5.4% in premarket trading after saying growth in its cloud business is stabilizing on signing new deals. However, it warned that customers remained wary about spending heading into the holiday quarter.
Intel gained 7.9% after forecasting fourth-quarter revenue and margins above estimates as the chipmaker was optimistic about a rebound in personal computer sales, improved data center business and demand for manufacturing services.
Among other chip stocks, Advanced Micro Devices rose 2.1% and Nvidia added 1.6%.
Megacap tech and tech-adjacent stocks including Microsoft, Meta Platforms, Tesla and Alphabet gained between 0.7% and 2.1% as U.S. Treasury yields dropped after Thursday’s weaker-than-expected U.S. inflation and disposable income data.
Investor focus will be on personal consumption expenditure for September, the Federal Reserve’s preferred inflation metric, at 8:30 a.m. ET for more clarity on the monetary policy outlook.
The U.S. Commerce Department’s report is expected to show a 0.3% monthly rise in the headline and core figures, excluding volatile energy and food items, according to a Reuters poll. Annually, they are seen rising 3.4% and 3.7%, respectively.
Traders have fully priced in an interest rate hold in the Fed’s policy decision on Nov. 1 and a 80% chance of the same in December, as per CME’s FedWatch tool.
Meanwhile, bets of a 25-basis-point rate cut stood at over 32% each in May and June.
All the three benchmark indexes are set for weekly and monthly losses with investors gauging the earnings and data deluge for clues on the economy’s strength.
At 5:03 a.m. ET, Dow e-minis were up 114 points, or 0.35%, S&P 500 e-minis were up 26.25 points, or 0.63%, and Nasdaq 100 e-minis were up 141.5 points, or 1%.
Investors will also monitor quarterly earnings from Chevron, Exxon Mobil and Colgate-Palmolive during the day.
Ford Motor lost 2.7% after withdrawing its full-year results forecast due to “uncertainty” over the pending ratification of its deal with the United Auto Workers union, and warning of continued pressure on electric vehicles.
The tensions in the Middle East were also on investors’ radar.
Two U.S. fighter jets struck weapons and ammunition facilities in Syria in retaliation for attacks on U.S. forces by Iranian-backed militia as concerns grew that the Israel-Hamas conflict may spread in the Middle East.
(Reporting by Ankika Biswas in Bengaluru; Editing by Arun Koyyur)
