(Reuters) – Futures tracking the S&P 500 and Nasdaq 100 rose on Thursday after an upbeat forecast from Tesla put mega-cap gains on a positive note following declines in the major indexes the previous session.
Shares of the electric vehicle maker rose nearly 11% in premarket trading after it reported robust third-quarter earnings and surprised investors with a forecast of 20-30% sales growth next year.
Tesla was the first of the so-called Magnificent Seven group of mega-cap stocks to report, with results from some of the cohorts expected next week.
The other six also rose: Nvidia rose 1.3%, Amazon.com rose 0.6% and Meta Platforms gained 0.9% after steep declines in the previous session.
At 4:55 a.m. ET, the Dow E-minis were down 39 points (0.09%), the US S&P 500 E-minis were down 21.25 points (0.36%) and the Nasdaq 100 E-minis were down 135.75 points (0 .67%) higher.
Wall Street sold off on Wednesday, with the benchmark S&P 500 falling for the third straight time and the Nasdaq having its worst day since early September.
Stocks have fallen from record levels over the past few sessions as a reassessment of bets on Federal Reserve rate cuts, rising Treasury yields, corporate earnings and uncertainty over the upcoming U.S. election.
“Price action appeals to a market that was too rich and in good hands, and when the cracks started to appear the signal was there for others to follow,” said Chris Weston, head of research at Pepperstone.
The moves were likely exacerbated as traders tried to hedge their losses, Weston added.
The yield on the 10-year Treasury note fell slightly on the day, but was still trading around its highest level since late July.
Boeing shares fell 3% after factory workers voted Wednesday to reject a contract offer and continue a more than five-week strike, sending the company’s losses soaring.
International Business Machines lost 4.3% after missing third-quarter revenue estimates, while gold producer Newmont fell 5.4% as higher costs and weaker production in Nevada missed profit expectations.
Third-quarter earnings season continues apace, with the likes of United Parcel Service, Southwest Airlines and Keurig Dr Pepper reporting before the bell.
S&P Global flash PMIs and weekly jobless claims data are expected on the day, while Beth Hammack of the Cleveland Fed will speak.
(Reporting by Lisa Mattackal in Bengaluru; Editing by Saumyadeb Chakrabarty)
