Stock futures are experiencing an increase, with National Association of Security Dealers Automated Quotations (Nasdaq) poised to surpass previous records as oil prices decline. As on Monday morning, the U.S. Equity future jumped, investors have been looking for a batch of mega-cap technology earnings to keep driving the Nasdaq Composite to new heights this week.
Moreover, a potential cooling geopolitical situation also aided risk sentiment. Oil prices have been declining even after the Israeli-Iran strike, which was feared by many would lead to significant changes in oil and nuclear facility’s future.
After the previous week, the market was split. On Friday, the tech-heavy Nasdaq Composite jumped to a new intraday all-time high, rising 0.56% to close at 18,518.61. On the flip side, the Dow shed 259.96 points, or 0.61%, to close at 42,114.40. The broad-market S&P 500 inched lower by 0.03% to 5,808.12.
Both the Dow and S&P snapped and were not able to hold their six-week-long streak, while the Nasdaq managed to post its seventh positive week in a row.
Wall Street is also waiting for the biggest week, the final week before the Nov. 5 U.S. Presidential election. Five of the seven titans– Alphabet, Microsoft, Meta Platforms, Amazon, and Apple – are tentatively scheduled to release their earning reports for the third quarter.
“One thing we expect to see play out is these megacap tech names continuing to reinforce commitment to AI in tech spending broadly,” Yung-Yu Ma chief investment officer at BMO Wealth Management, told CNBC. He thinks there will be no option of stepping out of that.
“If for some reason we don’t get that – if a few of those tech companies reporting talk about say tapping on the brakes a little bit in some of these investments – the market would not take that well,” he added. “So that’s going to be somewhat impactful, for the market to actually hear that these companies are continuing their commitment to spending in this area, if not accelerating.”
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