The S&P 500 futures increased after Meta and Amazon reported their earnings, as investors awaited the January jobs report. Futures for the broader market index rose by about 0.5%, while Nasdaq 100 futures climbed by 1%. Dow Jones Industrial Average futures remained steady.
In after-hours trading, Meta’s shares surged by 15% after the social media company surpassed analysts’ expectations. Additionally, the parent company of Facebook declared its first quarterly dividend and approved a $50 billion share buyback program. Amazon’s shares also jumped by 7% following a strong performance in the fourth quarter. However, Apple’s stock declined by 3% due to a decrease in sales in China during the fiscal first quarter.
This positive momentum follows a day of recovery in Thursday’s trading session, with the Dow Jones Industrial Average gaining 0.97%, and the S&P 500 and Nasdaq Composite rising by 1.25% and 1.3% respectively. The previous day’s sell-off, triggered by Federal Reserve chair Jerome Powell’s indication that a rate cut in March was unlikely, was largely corrected.
According to Art Hogan, chief market strategist at B. Riley Wealth Management, the market’s optimism regarding a potential rate cut is evidenced by the upward trend on Thursday. He also noted that better-than-expected earnings from various companies have contributed to the positive market sentiment. Hogan anticipates continued market rally in 2024, attributing the previous day’s pullback to a minor setback.
Investors and the Fed will analyze January’s jobs report, which is expected to show a growth of 185,000 positions and a slight increase in the unemployment rate to 3.8%. This is in comparison to December’s addition of 216,000 positions and an unemployment rate of 3.7%. Before the market opens on Friday, earnings reports are expected from Chevron, Exxon Mobil, Bristol-Myers Squibb, Cigna, and AbbVie.
