S&P 500 and Nasdaq 100: Futures Rebound as Tesla Powers Tech Stocks Higher

S&P 500 Futures Rise After Three Days of Losses as Tesla Lifts Tech Stocks

S&P 500 futures saw a rebound on Thursday in the pre-market session, following three consecutive losing sessions, fueled by strong corporate earnings from Tesla and other major players. The index added 0.5%, while Nasdaq 100 futures rose by nearly 0.9%. In contrast, Dow futures lagged, down 51 points, or 0.1%, due to weakness in some industrial stocks.

Technically, the benchmark index appears to be going through a normal correction phase. If the selling pressure continues over the near-term, don’t be surprised by a pullback into the 50-day moving average at  5739.54. This move could be attractive to investors since it represents value.

Tesla Leads Premarket Gains

Tesla shares surged over 14% in premarket trading after reporting better-than-expected third-quarter results. The electric vehicle manufacturer beat analyst forecasts, providing a significant lift to the tech-heavy Nasdaq. CEO Elon Musk also projected continued growth for the company, estimating vehicle production growth of 20-30% next year.

Other companies joining the earnings rally included Whirlpool and Lam Research. Whirlpool gained 4.7% on the back of its positive quarterly results, while Lam Research rose 5%, boosted by better-than-expected performance in the semiconductor sector.

Dow Faces Pressure from IBM and Boeing

While tech stocks surged, the Dow Jones Industrial Average faced headwinds. IBM dropped more than 3% as the company missed revenue targets, with its consulting division falling short of estimates. Boeing shares also declined by over 2%, weighed down by labor issues after its machinists rejected a new contract, extending a five-week strike. These factors contributed to the Dow’s underperformance compared to the broader market.

Earnings Season Update

With more than 27% of S&P 500 companies having reported their third-quarter results, 76% of them have exceeded Wall Street expectations, according to FactSet. The strong earnings performance has helped mitigate some of the negative sentiment from recent market declines, particularly after the S&P 500 and Nasdaq suffered losses of nearly 1% and 1.6%, respectively, on Wednesday.

Treasury Yields and Market Sentiment

U.S. Treasury yields eased on Thursday, providing a tailwind for equities. The 10-year Treasury yield, which had reached 4.25% during Wednesday’s session, retreated slightly, alleviating some of the pressure that rising yields had placed on the stock market earlier in the week. Lower yields are seen as supportive for stocks, especially in interest-sensitive sectors like technology.

Market Outlook

Despite recent volatility, market sentiment appears to be stabilizing, driven by strong earnings reports. While concerns around rising Treasury yields and labor strikes persist, the robust performance from key companies such as Tesla and Lam Research has injected optimism into the market.

Looking ahead, if Treasury yields continue to moderate and earnings trends remain positive, the S&P 500 could see further upside. Traders should watch for any developments in labor negotiations and economic data that could impact sentiment in the coming days.