(Reuters) – U.S. stock index futures rose on Friday, buoyed after upbeat earnings from Amazon offset a tech-led selloff in the previous session, as investors awaited crucial nonfarm payrolls data for clues on the Federal Reserve’s interest-rate trajectory.
Amazon.com (NASDAQ:AMZN) soared 5.8% in premarket trading, as strong retail sales lifted its profit above Wall Street estimates.
That helped raise market morale after a tech-driven slump in Thursday’s session, as cost warnings on AI-related infrastructure from Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) saw the Nasdaq slump 2.7%, its worst day in nearly two months.
Nonfarm payrolls data is due later in the day, with economist polls by Reuters forecasting that the economy added 113,000 jobs in October. However, analysts said labor strikes and hurricanes could skew the month’s data.
Meanwhile, Apple (NASDAQ:AAPL) dropped 1.1% despite beating quarterly sales forecasts, as investors worried about a decline in China sales.
While investors are largely certain the Fed will cut rates by 25 basis points in November, the outlook for subsequent months is less clear as economic data remains robust.
Treasury yields have risen to nearly four-month highs in recent weeks, pressuring equities, as traders speculate that the central bank will adopt a less dovish stance.
The Nov. 5 U.S. presidential election is also on investors’ minds, with many analysts predicting a close race and some uncertainty over the final outcome. The Federal Reserve’s November meeting kicks off the following day.
Unsurprisingly, equity volatility has risen in recent days, with the CBOE Volatility Index trading at a more than three-week high.
“(The) US October Jobs Report and Election Date pose significant risks to both sides of current rates outlook, we think the Fed is more likely to change its forward guidance than its rate decision next week in case of data (or) political surprises,” analysts at Danske Bank wrote.
At 5:15 a.m. ET, Dow E-minis were up 78 points, or 0.19%, S&P 500 E-minis were up 16.5 points, or 0.29% and Nasdaq 100 E-minis were up 82.5 points, or 0.41%.
Intel (NASDAQ:INTC) jumped 6.1% after a better-than-expected revenue forecast, lifting other chip stocks, with Nvidia (NASDAQ:NVDA) rising 2%.
Shares of Boeing (NYSE:BA) rose 2.4% after a union of striking workers endorsed an improved contract offer that includes a 38% pay rise, with members expected to vote on Monday.
Chevron (NYSE:CVX) rose 1.1% and Exxon Mobil (NYSE:XOM) gained 0.9% ahead of results expected before the bell.
U.S. Manufacturing PMI data is also due later in the day.
