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Futures up: Dow 0.19%, S&P 500 0.29%, Nasdaq 0.41%
Nov 1 (Reuters) - U.S. stock index futures rose on
Friday, buoyed after upbeat earnings from Amazon ( AMZN ) 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 ( 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 ( META ) and Microsoft ( 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 ( 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 ( INTC ) jumped 6.1% after a better-than-expected
revenue forecast, lifting other chip stocks, with Nvidia ( NVDA )
rising 2%.
Shares of Boeing ( 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 ( CVX ) rose 1.1% and Exxon Mobil ( XOM ) gained
0.9% ahead of results expected before the bell.
U.S. Manufacturing PMI data is also due later in the day.