Stock Futures Jumping Higher as Market Braces for Big Tech Earnings

Callum Keown

It’s a pivotal week for the stock market and investors will need to have their wits about them as the risks and catalysts come thick and fast.

Big Tech earnings are likely to dominate proceedings but Friday’s October jobs report could have a big say in whether or not last week’s nervousness is here to stay.

The Middle East conflict remains a concern for markets, although it’s one that’s being put aside for now it seems. Oil prices tumbled close to 6% early Monday after Israel’s attack on Iran over the weekend spared oil facilities.

Investors seemed in a positive mood to start the week. S&P 500 futures rose 0.6% in early premarket trading Monday, while futures on the Dow Jones Industrial Average were up 0.5% and Nasdaq 100 futures climbed 0.8%.

The tech-heavy Nasdaq Composite hit a new intraday record Friday and Monday’s early action suggests momentum can continue. The optimism comes ahead of a huge week of tech earnings. Five of the so-called Magnificent Seven group of mega-caps are set to report results–Alphabet, Amazon, Apple, Meta Platforms, and Microsoft.

Big Tech earnings are always major market events, and with market jitters creeping in and valuations remaining elevated, this quarter will be no different. More than 150 companies will report in the coming days in the biggest week of the third-quarter earnings season.

Outside tech, however, things don’t look quite as rosy right now. The Dow and S&P 500’s six-week winning streaks came to an abrupt end last week as bond yields rose.

There are more potential pitfalls lying in wait this week and next week–not least Election Day. Before that, Friday’s October jobs report has the potential to steal the focus away from Big Tech earnings and put the spotlight back on the Federal Reserve.

A hot jobs report could point to fewer interest rate cuts in the coming months, further putting the brakes on stocks.

“There’ll be plenty to test the market nerves,” Deutsche Bank strategist Peter Sidorov said Monday, describing last week’s action as a “mini-scare.”

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