(Reuters) – U.S. stock index futures headed higher on Friday, with a drop in Treasury yields providing some relief for stocks despite a drop in Tesla, although all three major indexes looked poised for a weekly loss.
Ten-year Treasury yields fell after rising to 4.26% earlier this week, trading around 4.19%.
Meanwhile, Tesla shares fell 1.8% in premarket trading after rising nearly 22% the previous session, as investors cheered the EV maker’s strong sales forecasts.
Stock gains had lifted the Nasdaq and S&P 500 on Thursday, marking the S&P 500’s first daily gain of the week.
All three major indexes are on the verge of breaking their six-week winning streaks, with stocks unsettled by a fairly rapid rise in interest rates as investors bet that a stronger economic outlook could limit the scope of future rate cuts by the US Federal Reserve.
At 5:30 a.m. ET, the Dow E-minis were up 82 points, or 0.19%, the U.S. S&P 500 E-minis were up 13.75 points, or 0.24%, and the Nasdaq 100 E-minis were up 56 .25 points, or 0.28%.
Shares of Apple fell 0.8% after data showed iPhone sales in China fell in the third quarter, while Capri Holdings fell 46.4% after a US judge blocked a pending merger between the company and handbag maker Tapestry .
Shares of memory chip maker Western Digital rose 12% after it beat quarterly profit expectations on Thursday.
A mixed performance across sectors and continued uncertainty surrounding the US presidential election also made investors cautious this week.
The week beginning October 28 promises to be a crucial one for Wall Street, with gains from megacaps like Alphabet, Apple and Microsoft, as well as non-farm payrolls data and the final stretch just before the November 5 election.
Markets have begun pricing in a second Donald Trump administration in recent weeks, despite concerns about a possible contested outcome and whether one party will control Congress after the election.
Earnings from New York Community Bancorp and Colgate-Palmolive are expected before the bell.
On the economic front, September’s durable goods figures and the final Consumer Sentiment Index from the University of Michigan are out, while Susan Collins of the Boston Fed will speak on the day. [FED/DIARY]
Investors are still anticipating a new rate cut of 25 basis points at the Fed’s meeting in November. According to LSEG data, they expect around two rate cuts by the end of the year.
(Reporting by Lisa Mattackal in Bengaluru; Editing by Pooja Desai)
