Tech Stocks Surge: Boosted by AI Investments and Strong Forecasts
S&P 500 and Nasdaq futures rose after Apple and Amazon's optimistic forecasts eased market concerns. Big Tech's increased AI investments stirred unease, leading to a sharp drop in indexes. Nasdaq was poised for its seventh monthly gain following adjusted Federal Reserve rate cut expectations.
The S&P 500 and Nasdaq futures rebounded on Friday following positive financial forecasts from tech giants Apple and Amazon. This development came as a relief a day after the indexes experienced their most significant decline in over three weeks.
Amazon's shares soared 11.5% in premarket trading due to anticipated quarterly sales that outpaced estimates, attributed to a surge in cloud revenue unseen in nearly three years. Likewise, Apple experienced a 2.3% increase based on expectations for robust holiday quarter iPhone sales and overall earnings surpassing Wall Street's predictions.
The tech-dominated Nasdaq was on course for its longest monthly winning streak since 2017, driven by initial enthusiasm over Federal Reserve rate cuts, despite recent cautionary notes from Fed policy adjustments. October presented challenges as governmental delays hindered economic data visibility, affecting market and policy decisions.
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