Nasdaq 100 Futures Slip as Apple's Weak Revenue Outlook Stalls Tech Rally
ICARO Media Group
Stock futures of the Nasdaq 100 declined Thursday night following Apple's latest quarterly results, dampening the tech-heavy index's momentum. Nasdaq 100 futures slipped 0.2%, while S&P 500 futures dropped 0.1%. However, futures tied to the Dow Jones Industrial Average remained relatively unchanged.
During after-hours trading, Apple's stock fell 3% after the company issued a disappointing revenue outlook for the December quarter. Despite beating expectations in terms of revenue and profit, Apple experienced a decline in overall sales for the fourth consecutive quarter.
Meanwhile, Square, a payment solutions provider, witnessed a significant boost in its shares, surging 13% after beating earnings forecasts and raising its full-year guidance.
Yesterday's regular trading session marked a broad rally for stocks as Treasury yields retreated. The S&P 500 recorded its best day since April, rising 1.9%, while the Dow Jones Industrial Average saw its best session since June, gaining 1.7%. The Nasdaq Composite also posted its most substantial day of growth since July, with a rise of about 1.8%.
The continuation of this positive momentum might depend on the release of October's jobs report on Friday morning. Economists predict an increase of 170,000 payrolls, compared to September's impressive 336,000 jobs. The unemployment rate is expected to remain at 3.8%.
Investors are showing growing optimism that the Federal Reserve's rate-hiking campaign is nearing its end, leading to sizable weekly gains for stocks as of Thursday's close. The Dow Jones Industrial Average is up 4.4%, on track for its best weekly performance since October 2022. The S&P 500 is heading for a 4.9% advance on the week, while the Nasdaq is up 5.2% - both indices on course for their best week since November 2022.
Looking ahead, Church & Dwight, a consumer goods giant, along with Dominion Energy and Cardinal Health, will announce their quarterly results on Friday morning.
Overall, the positive market sentiment earlier in the week experienced a setback due to Apple's weak revenue outlook. Investors will now eagerly await the jobs report to provide further insights into the direction of the economy and stock market.