The broader U.S. market and technology stocks could return to their winning ways on Friday, riding on the tech earnings strength, after the major averages retreated from record highs in the previous session. The S&P 500 and Nasdaq 100 futures traded firmly in positive territory, while the futures tied to the blue-chip Dow Jones Industrial Average pointed to a marginally lower opening.
Traders may also take heart from the extension of the Israel-Lebanon ceasefire by three weeks, under the behest of U.S. President Trump.
Intel Keeps Soaring
A better-than-expected first-quarter report from legacy chipmaker (INTC), which began turning around its flailing fortunes since last year, could set the tempo for the market’s momentum on Friday.
The chipmaker’s first-quarter earnings beat expectations, thanks to above-consensus revenue and better-than-expected gross margin, and it also issued an upbeat forecast for the current quarter. Morgan Stanley, while cautious regarding market share trends, upped the price target for the stock to $73 from $56. Intel shares jumped more than 28% in premarket trading to over $85.
Middle East Uncertainty, Software Sell-off Pull Indices Lower Thursday
On Thursday, U.S. stocks came under pressure from the weakness in the tech space, especially among software stocks, although the semiconductor juggernaut continued to roll, rising for a 17th straight session.
Trump’s defiant stance to keep the blockade on the Iranian ports, receding hopes of a peace deal and economic data, which looked positive but threw up worrisome inner details, weighed down on sentiment, forcing traders to take profits on recent gains.
The S&P 500 fell 0.41% to 7,108.40 on Thursday, the Nasdaq Composite slumped 0.89% to 24,438.50, and the Dow moved down a more modest 0.36% to 49,310.32.
Crude Slips, Gold Flat, Dollar Weakens
After a strong weekly performance, crude oil futures fell in early trading on Friday amid the Lebanon truce but Trump warned in a post on Truth Social that time is ticking for Iran to reach a deal.
On a positive note, report suggested Iranian Foreign Minister Abbas Araqchi expected to arrive in Islamabad on Friday with a small team.
https://x.com/DSA_Pak/status/2047634066535485826
Gold futures were flat with a downside bias, and the safe-haven dollar fell against major counterparts, with the exception of the yen.
Pre-Market Snapshot (Levels as of early Friday trade)
- S&P 500 futures: 7,172 (+0.40%)
- Nasdaq 100 futures: 27,284 (+1.30%)
- Dow futures: 49,470 (-0.04%)
- Russell 2000 futures: 2,796.10 (+0.36%)
- VIX: 18.77 (-2.80%)
- Brent crude: $104.55/bbl (-0.49%)
- WTI crude: $94.75/bbl (-1.15%)
- Gold: $4,722.10 (-0.04%)
- Bitcoin: $78,303.43 (+0.52%)
Stocks on the Move In Premarket
While Intel is poised to hit fresh highs, some of the optimism has rubbed off on its peer AMD (AMD), with its stock up more than 13%. AMD’s market cap topped the $500 billion mark for the first time on Thursday. Wolfspeed (WOLF), GlobalFoundries (GF) and Lattice Semiconductor (LSCC) also witnessed handsome premarket gains.
What to Watch Heading into Friday
Apogee Enterprises (APOG), HCA (HCA), Procter & Gamble (PG), SLB (SLB) and Western Union (WU) stocks could also see some action in reaction to their earnings reported ahead of the market open.
On the economic front, the inflation expectations reading from the University of Michigan’s preliminary April consumer sentiment survey could create some ripples in the market.
