Traders work on the floor of the New York Stock Exchange (NYSE) on October 20, 2023 in New York City.
Spencer Platt | Getty Images
Stock futures ticked higher on Monday morning as traders eagerly awaited the release of corporate earnings from tech industry giants.
Futures tied to the Dow Jones Industrial Average rose 49 points, or 0.15%. S&P 500 futures and Nasdaq 100 futures climbed 0.24% and 0.26%, respectively.
The markets had a challenging week previously, with all three major indexes experiencing declines due to concerns over higher interest rates. The S&P 500 closed the week with a 2.4% decline, marking its first losing week in three. The Dow Jones Industrial Average dropped 1.6%, while the Nasdaq Composite slumped 3.2% for its second consecutive losing week.
The yield on the benchmark 10-year U.S. Treasury rose above the significant 5% level on Thursday, reaching its highest point since July 2007. This increase followed Federal Reserve Chairman Jerome Powell’s hawkish messaging during a speech at the Economic Club of New York.
This week, earnings season will ramp up with major tech companies like Alphabet, Amazon, Meta, and Microsoft providing crucial insights for the stock market.
“We’re hopeful that we’ll continue to see positive strength in the economy and the forward outlook,” said Ryan Detrick, chief market strategist at Carson Group. “The headlines may be alarming, but the fundamentals appear solid to us. We are expecting earnings season to exceed expectations.”
Traders are also anticipating the release of key economic data this week, including Thursday’s third-quarter advance report for the U.S. gross domestic product. The release of the personal consumption expenditure, an inflation measure, is scheduled for Friday. Investors are concerned that if these reports show stronger results than anticipated, another interest rate hike may still be on the table this year.
