Stock futures rose in overnight trading as the market ditched the heavy selling in April and investors responded positively to earnings from Meta Platforms.
Futures on the Dow Jones Industrial Average added 60 points, or 0.2%. S&P 500 futures rose 0.7% and Nasdaq 100 futures jumped 1.2%.
The moves came as Meta shares surged more than 18% hours after beating earnings but lagging revenue, a sign that investors may see signs of relief in the turbulent tech sector. Shares were down 48% in the year prior to results.
Meanwhile, Qualcomm shares are up 5.6% in extended trading on strong earnings while PayPal is up 5% despite issuing weak guidance for the second quarter.
“I think a lot of people want to believe profits are going to get us out of this, but profits aren’t what drove us to this,” SoFi’s Liz Young said in an interview with “Closing Bell: Overtime” on Wednesday. “…But the reality is that there are so many overall headwinds ahead in the next 60 days that it will be difficult for the market to impress the market.”
Activity followed an hour after a choppy normal trading session that saw the Nasdaq Composite plunge to its lowest level in 2022, as stocks appeared to recover from the tech-led sell-off in April. The index has fallen more than 12% since the beginning of April.
In regular trading on Wednesday, the tech-heavy Nasdaq closed at 12488.93, after rising to 1.7% at session highs. The Dow Jones Industrial Average rose 61.75 points, or 0.2%, to 33301.93, supported by gains from Visa and Microsoft, while the Standard & Poor’s 500 added 0.2% to 4,183.96.
Investors await Thursday’s big tech earnings from Apple, Amazon and Twitter, along with Robinhood’s results. Unemployment claims are also scheduled for release on Thursday.
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