U.S. stock index futures rose in evening deals on Thursday as heavyweight technology stocks appeared to be easing from bruising losses in recent sessions, with the focus turning to key upcoming inflation data.
Futures rose after Wall Street endured another mostly negative session, following some disappointing major tech earnings earlier this week. But the pace of losses in tech stocks now appeared to be slowing.
S&P 500 Futures rose 0.3% to 5,456.0 points, while Nasdaq 100 Futures rose 0.3% to 19,049.0 points by 20:16 ET (00:16 GMT). Dow Jones Futures rose 0.2% to 40,284.0 points.
Tech steadies in after-hours trade after bruising losses
Heavyweight technology stocks steadied in after-hours trading after logging steep losses over the past week. Selling in tech intensified this week following underwhelming earnings from Tesla Inc (NASDAQ: TSLA) and Alphabet Inc (NASDAQ: GOOG), with the latter potentially setting a precedent for earnings from other internet giants.
Tesla, NVIDIA Corporation (NASDAQ: NVDA), Microsoft Corporation (NASDAQ: MSFT) and Apple Inc (NASDAQ: AAPL) all moved in a tight range. But Alphabet saw extended losses after OpenAI unveiled an artificial intelligence search engine aimed at competing directly with Google.
Tech earnings are set to continue in the coming week, with Microsoft and Apple due on Tuesday and Thursday, respectively. Prints from Advanced Micro Devices Inc (NASDAQ: AMD), Qualcomm Incorporated (NASDAQ: QCOM) and Amazon.com Inc (NASDAQ: AMZN) are also due next week.
But a sustained rout in tech saw the NASDAQ Composite close down 0.9% at 17,181.72 on Thursday- its weakest level since early June. The S&P 500 fell 0.5% to an over one-month low of 5,399.22 points, while the Dow Jones Industrial Average rose 0.2% to 39,935.07 points, benefiting from some defensive buying.
PCE inflation data on tap
Selling in tech was also driven by increased expectations for interest rate cuts, which saw investors lock profits in the sector and pivot into stocks with more exposure to an economic recovery.
PCE price index data due later on Friday is set to provide more cues on the rates front. The reading is the preferred inflation of the Federal Reserve and is likely to factor into the central bank’s stance on interest rates.
The reading comes just days before a Fed meeting next week. The central bank is widely expected to keep rates steady, while investors will be watching for any cues on when it plans to begin cutting rates.
The general consensus is for a 25 basis point cut in September.
