Tech Leaders Propel S&P 500 Futures Higher with Earnings Surge
S&P 500 futures climbed on Friday, buoyed by significant gains in major tech companies like Alphabet and Microsoft following their impressive earnings reports. Market participants also analyzed the latest US inflation data.
These advances were strengthened by the March core personal consumption expenditures (PCE) index, which excludes food and energy. The index rose by 2.8% year-over-year, surpassing the 2.7% forecast by Dow Jones. Additionally, personal spending increased by 0.8%, exceeding expectations of a 0.7% rise.
Alphabet's shares surged nearly 12% after the company reported earnings that exceeded expectations for the first quarter. The company also announced its inaugural dividend alongside a $70 billion buyback program. Microsoft's stock also saw a 4% increase, driven by strong fiscal third-quarter results.
The performance of these mega-cap stocks could potentially uplift the major stock averages, especially following a previous down day on Wall Street. Despite this, the major stock indexes are poised for a positive week: the S&P 500 has risen 1.6% so far, on track to end a three-week losing streak, while the Nasdaq has advanced over 2%, aiming for its first positive week in the last five.