Market Analysis

Futures for US stocks climb, and Alphabet soars on solid results

Amos Simanungkalit · 30 Oct144.3K Views

U.S. stock index futures gained during Tuesday's evening trading session, driven by a surge in Alphabet shares following the company’s strong earnings report. The positive results from the Google parent company lifted sentiment for upcoming tech earnings, despite broader market concerns.

Tech buying led the Nasdaq to a record high, though gains were more limited in other sectors, as investors remained cautious ahead of the 2024 presidential election and several significant economic data releases scheduled for this week.

By 7:17 p.m. ET (11:17 p.m. GMT), S&P 500 Futures climbed 0.2% to 5,883.0 points, Nasdaq 100 Futures rose 0.2% to 20,737.25 points, and Dow Jones Futures edged up 0.1% to 42,487.0 points.

Alphabet hits highest level in over three months after strong earnings
Alphabet Inc (NASDAQ) Class A shares jumped 5.5% in after-hours trading, reaching a three-month high of $179.0.

The company reported better-than-expected earnings for the September quarter and highlighted that its investments in artificial intelligence are beginning to deliver. Its cloud division, closely tied to AI, recorded its fastest growth in two years, with election-related advertising spending—especially on YouTube—boosting ad revenue.

Alphabet’s strong performance bodes well for other tech giants, which are set to announce earnings in the coming days. Meta Platforms Inc (NASDAQ) and Microsoft Corporation (NASDAQ) are slated for Wednesday, while Amazon.com Inc (NASDAQ) and Apple Inc (NASDAQ) will report on Thursday.

Elsewhere, however, results were mixed. Chipmaker AMD (NASDAQ) dropped nearly 8% after providing an underwhelming forecast for the current quarter.

Wall Street closes mixed amid election and rate uncertainty
Wall Street had a mixed close on Tuesday, with investors favoring tech stocks while largely avoiding other sectors.

The NASDAQ Composite climbed 0.8% to a record close of 18,717.58 points, while the S&P 500 gained 0.2% to 5,832.92 points. The Dow Jones Industrial Average, however, lagged, slipping 0.4% to 42,233.05 points.

Investors are cautious around economically sensitive sectors as they await key economic data releases this week. Third-quarter GDP data is due Thursday, with the PCE price index—the Federal Reserve’s preferred inflation measure—and nonfarm payrolls expected Friday. These figures could shape expectations for the Fed’s upcoming interest rate decision next week, where a smaller 25 basis-point rate cut is anticipated.

Market volatility is also likely to increase with the approach of the 2024 presidential election on November 5. The race between Donald Trump and Kamala Harris remains tight, with recent polls indicating a slight gain for Trump.