Following underwhelming earnings from Netflix Inc, U.S. stock index futures saw a slight rise in evening deals on Thursday. The market sentiment remained fragile due to uncertainty over U.S. politics, with growing calls for President Joe Biden to withdraw his reelection bid. Despite these factors, a broad rotation out of heavyweight technology stocks appeared to have eased before a string of key earnings from the sector next week.
Recovery After Losses
In aftermarket trading, major technology stocks steadied after facing steep losses over the past two sessions. Companies such as Apple Inc and Microsoft Corporation rose slightly, signaling a potential recovery. The losses in the tech sector were a result of profit-taking and a rotation into sectors more likely to benefit from an economic recovery.
The losses in the technology sector had a significant impact on Wall Street, with the S&P 500, the NASDAQ Composite, and the Dow Jones Industrial Average all experiencing declines. The focus now turns to key upcoming earnings from the tech sector next week, particularly from companies like Microsoft, Alphabet Inc, and Tesla Inc.
Key Earnings Reports
Microsoft, Google owner Alphabet Inc, and Tesla Inc are all set to report their earnings next week. These reports will offer more clues on artificial intelligence, especially after a massive valuation spike over the past year. Tesla’s performance will be closely watched as the electric car maker navigates a decline in sales this year.
The chipmaking sector was also in focus, with heavyweight chipmaking stocks facing potential challenges due to more U.S. sanctions on China. Positive earnings from ASML Holding and TSMC aided chipmaking stocks, with TSMC reporting stronger-than-expected second-quarter earnings and raising its outlook on strong AI-fueled demand.
The future of the tech sector and its impact on the global economy will depend on the upcoming earnings reports and how companies navigate challenges such as sanctions and decline in sales. The tech sector remains a crucial player in the market, and any developments in this sector will have ripple effects on U.S. stock index futures and global markets.