US Markets Set to Open Higher on Tech Earnings Boost
London: 2 February 2024 (TraderMade): The green screens of Wall Street are flashing green! Tech titans Meta and Amazon soared after smashing earnings, sending pre-market bulls into a frenzy. Yet, the crucial nonfarm payrolls report is just around the corner, ready to steer the market direction.
Tech earnings provided a springboard, but the jobs report is the game-changer. A softer print could fuel hopes for Fed rate relief, impacting markets across the board. Crucial data is awaited.
US Markets Poised for Tech Bounce, But Jobs Report Holds the Key:
- Tech Earnings Boost: Meta & Amazon soar pre-market on better earning results, lifting other tech stocks.
- Jobs Report in Focus: Eyes on nonfarm payrolls data for clues on labor market cooling and potential Fed rate cuts.
- Mixed Global Markets: Asian markets are volatile, and Europe is up on positive earnings.
- Dollar Dips: Continues weekly decline, while Treasury yields hold steady.
- Dot-Com Bubble Concerns: Bank of America warns of potential parallels despite tech rally.
- Oil Down, Gold Up: Crude heads for weekly loss on ceasefire hopes, gold eyes best week since December.
Good News For Tech Investors
US stocks are poised for a green opening on Friday due to excellent earnings reports from Meta and Amazon. However, the crucial event of the day remains the jobs report, which could influence the Federal Reserve's interest rate decisions.
Tech Towers Topple Records
- Meta leaps 17% pre-market: Social media giant crushes earnings, boosting peers like Snap and Shopify.
- Amazon surges 7.2%: E-commerce behemoth delivers strong results, fueling retail optimism.
This positive sentiment spills over to other tech companies like Snap and Shopify.
Big Oil Joins The Party
Chevron and Exxon Mobil also reported positive earnings, adding to the overall market optimism.
Jobs Report In Focus
All eyes are on the upcoming employment data, which could indicate a slowdown in the labor market and potentially pave the way for Fed rate cuts. Economists predict a slight increase in the unemployment rate to 3.8%.
Mixed Picture Elsewhere
Asian markets showed volatility, with some recovering from earlier declines. Europe enjoyed positive corporate updates and is set for a gain.
Dollar Weakens, Treasuries Fluctuate
The greenback continues its weekly decline, while Treasury yields remain steady after previous price action, reflecting concerns about US regional banks.
Investors Eye Similarities To Dot-Com Era
Bank of America strategists warn of potential parallels between the current market behavior and the dot-com bubble, urging caution despite the tech rally.
Oil Dips, Gold Shines
Crude oil heads for a weekly loss as potential ceasefire talks in the Israel-Hamas conflict raise hopes for resolution, while gold is poised for its best weekly performance since December, supported by lower yields.
Image courtesy: edrod on Freeimages
