Copyright Reuters
Summary Companies Futures up: Dow 0.06%, S&P 500 0.62%, Nasdaq 1.09% Oct 31 (Reuters) - S&P 500 and Nasdaq futures gained on Friday after upbeat forecasts from Apple and Amazon helped soothe nerves a day after the indexes logged their steepest drop in more than three weeks. Amazon's (AMZN.O), opens new tab shares surged 11.5% in premarket trading after the company forecast quarterly sales above estimates on the back of its cloud revenue rising at the fastest clip in nearly three years. Sign up here. Apple (AAPL.O), opens new tab rose 2.3% as its forecasts for holiday quarter iPhone sales and overall revenue surpassed Wall Street expectations. With all but Nvidia (NVDA.O), opens new tab among the so-called "Magnificent Seven" having reported quarterly results, investors got a fresh look at how aggressively Big Tech is spending on artificial intelligence. The group - which makes up roughly 35% of the S&P 500's weight - plans to funnel billions into chips and data centers to power AI ambitions. The spending spree, however, has spooked markets. On Thursday, the S&P 500 (.SPX), opens new tab and Nasdaq (.IXIC), opens new tab posted their steepest intraday declines since October 10, with the benchmark index closing at its lowest in more than a week. Shares of Microsoft (MSFT.O), opens new tab and Meta (META.O), opens new tab led losses after their guidance flagged heavier AI-related outlays, stoking concerns over whether such investments can sustain long-term growth. At 4:18 a.m., Dow E-minis were up 30 points, or 0.06%, S&P 500 E-minis were up 42.75 points, or 0.62%, while Nasdaq 100 E-minis were up 280.25 points, or 1.09% All three indexes are poised for their third straight weekly rise. Of the 278 companies in the S&P 500 that have reported earnings to date for the third quarter, 83.1% have beaten analysts' expectations, according to data compiled by LSEG. MONTHLY GAINS DESPITE TEMPERED FED OUTLOOK The tech-heavy Nasdaq was on track for its seventh consecutive monthly advance, its longest streak since May 2017. The S&P 500 and blue-chip Dow were headed for their sixth. While expectations for faster Federal Reserve rate cuts buoyed stocks earlier in the month, markets are still adjusting to a shift in the Fed's policy outlook after the central bank delivered a widely expected quarter-point rate cut but signaled that another move in December was not a "foregone conclusion." The Fed's cautious language prompted traders to scale back bets on a third cut this year, with futures now pricing a 67.9% chance of a similar-sized move in December, down from nearly 90% earlier in the week. October proved challenging for investors and policymakers alike. A government shutdown delayed key economic data releases, leaving markets and the Fed with limited visibility on the economy's health. In other premarket moves, Netflix (NFLX.O), opens new tab rose 3.4% after Reuters reported it was actively exploring a bid for Warner Bros Discovery's (WBD.O), opens new tab studio and streaming business. Warner Bros rose 2.5%. Western Digital (WDC.O), opens new tab jumped 11.5% after forecasting quarterly earnings above Wall Street estimates. Strategy (MSTR.O), opens new tab rose 6.9% after posting a profit in the third quarter, compared with a loss a year earlier. Reporting by Pranav Kashyap in Bengaluru; Editing by Mrigank Dhaniwala
