* Futures up: Dow 0.5%, S&P 500 0.2%, Nasdaq 0.1%
* Intel ( INTC ) rises on upbeat quarterly revenue, profit forecast
* Oracle up on $7 billion Pentagon software contract
(Updates prices throughout)
By Ragini Mathur
July 24 (Reuters) - U.S. stock index futures edged higher on
Friday after a tech-led selloff in the previous session, as
investors weighed fresh earnings, escalating Middle East
tensions and a new tariff announcement from the Trump
administration.
Intel ( INTC ) added to the week's key earnings reports,
forecasting quarterly profit and revenue above Wall Street
estimates and outlining plans to increase spending over the next
two years. Its shares rose 3.4% in premarket trading.
The broader semiconductor sector, however, remained under
pressure.
The S&P 500 and the Nasdaq posted their
steepest one-day declines in a month on Thursday as concerns
mounted over the AI trade.
Results from Alphabet and Tesla
heightened investor unease about rising capital spending and
cash burn among major technology companies, setting a cautious
tone ahead of next week's earnings from Microsoft ( MSFT ),
Amazon ( AMZN ) and Meta.
Meanwhile, the Trump administration imposed new tariffs of
10% and 12.5% on goods from 60 trading partners, including
Europe and China, citing lax enforcement of forced-labor bans.
The move came as a temporary 10% global tariff expired.
"Trump's replacement tariffs were less shock and awe than
the first ones," Brian Jacobsen, chief economic strategist at
Annex Wealth Management, said in a note.
"They weren't a surprise, they're lower than the first set
of tariffs, and they have important carveouts to blunt the
immediate effect on consumer prices. It's business as unusual."
Geopolitical risks also remained in focus after President
Donald Trump threatened "major military punishment" for Iran and
its Houthi allies, following attacks by Yemeni fighters on two
Saudi oil tankers in the Red Sea.
Oil prices surged above $100 a barrel on Thursday as
investors reassessed the risk of a prolonged disruption to
energy supplies.
Brent was up nearly 40% this month. Although prices eased on
Friday, a sustained energy shock could rekindle global inflation
and unanchor inflation expectations.
The Federal Reserve is due to meet next week, with markets
pricing in a roughly one-in-three chance of a rate hike, up from
12% a week earlier, according to CME's FedWatch tool.
Investors will also watch next week's PCE data, the Fed's
preferred inflation gauge, due a day after the policy decision.
At 7:13 a.m. ET, Dow E-minis were up 234 points, or
0.45%, and S&P 500 E-minis were up 15.5 points, or
0.21%. Nasdaq 100 E-minis were up 27 points, or 0.09%.
The S&P 500 and the Nasdaq were on track for a second
straight weekly loss, while the Dow was set for a third
consecutive week of declines.
Oracle gained 2.4% after the Pentagon announced a
nearly $7 billion agreement, running for up to 10 years, to
consolidate the department's on-premises software licenses with
the cloud firm under a single contract.
Later in the session, investors will parse the preliminary
July PMI (purchasing managers' index) data at 9:45 a.m. ET for
an updated reading on U.S. manufacturing and services activity.