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U.S. stock index futures inched higher Wednesday, buoyed by a notable increase in Alphabet shares following the company’s robust earnings report. As of 06:25 ET (10:25 GMT), Dow Jones Futures were up by 50 points, or 0.1%, S&P 500 Futures climbed 15 points, or 0.3%, and Nasdaq 100 Futures added 43 points, or 0.2%.
Tuesday’s market saw a mixed close as the tech-heavy NASDAQ Composite rose 0.8% to a record high, the S&P 500 edged up by 0.2%, while the Dow Jones Industrial Average declined 0.4%.
Alphabet’s Earnings Boost Market Sentiment
Alphabet (NASDAQ:GOOGL) shares surged nearly 6% in premarket trading after the company announced stronger-than-expected Q3 results, fueled by AI investments and a robust cloud business. The September quarter’s revenue growth was further supported by election-driven ad spending, particularly on YouTube. Alphabet’s strong performance has set an optimistic backdrop for upcoming earnings releases from tech giants Meta Platforms, Microsoft, Amazon, and Apple.
Conversely, Advanced Micro Devices (AMD) saw an 8% dip after issuing weaker-than-expected guidance for the current quarter.
Key Economic Data to Watch
In addition to earnings, Wednesday brings a slew of economic data, including Q3 GDP figures expected to underscore U.S. economic strength. Early eurozone data surprised with a quarterly growth rate of 0.4%, beating expectations of 0.2%.
Additional reports include ADP’s private sector employment data ahead of Friday’s nonfarm payrolls, and the PCE price index on Thursday, the Federal Reserve’s preferred inflation measure. These figures will likely influence rate expectations, with the Fed anticipated to enact a smaller 25-basis-point rate cut in its upcoming meeting.
2024 Presidential Election Looms
Market volatility is likely to rise in the coming days as the November 5 presidential election nears. Polls and prediction markets indicate a closely contested race between Donald Trump and Kamala Harris, with recent data showing Trump gaining ground.
