U.S. Stocks May See Further Upside On Upbeat Amazon Results

The major U.S. index futures are currently pointing to a higher open on Friday, with stocks likely to see further upside after ending the previous session sharply higher.

Technology stocks appear poised to extend yesterday’s rally amid a sharp increase by shares of online retail giant Amazon (AMZN).

Shares of Amazon are soaring by more than 10 percent in pre-market trading after the company reported better-than-expected second quarter revenue and cloud growth.

Overall buying interest may be somewhat subdued, however, as the price of crude oil shows a strong move back to the upside following yesterday’s pullback.

U.S. crude oil futures are surging by nearly 2 percent, contributing to an increase in treasury yields amid concerns about the outlook for inflation and interest rates.

A steep drop by shares of Apple (AAPL) may also limit the upside for the broader markets, with the tech giant plunging by 8 percent in pre-market trading.

Apple is under pressure after the company reported fiscal third quarter revenue that exceeded analyst estimates but issued weak guidance for the current quarter.

Stocks moved sharply higher during trading on Thursday, largely offsetting the sell-off seen late in Wednesday’s session. The major averages showed a strong move to the upside early in the session and remained firmly positive throughout the day.

The tech-heavy Nasdaq helped lead the way higher, spiking 679.24 points or 2.8 percent to 25,122.18. The S&P 500 also shot up 121.48 points or 1.7 percent to 7,437.63 and the Dow jumped 613.92 points or 1.2 percent to 52,508.06.

The recovery rally on Wall Street largely reflected strength among technology stocks, as reflected by the surge by the Nasdaq.

Bargain hunting contributed to the strength among tech stocks after the Nasdaq plunged to a three-month closing low on Wednesday. The Dow and the S&P 500 also ended the session at their lowest closing levels in well over a month.

Microsoft (MSFT) helped lead the tech rally, with the software giant soaring by 15.5 percent after reporting better than expected quarterly earnings amid strength in its Azure business.

With Microsoft leading the way higher, substantial strength was visible among software stocks, as reflected by the 8.4 percent spike by the Dow Jones U.S. Software.

Semiconductor stocks also saw a significant rebound, resulting in a 8.2 percent surge by the Philadelphia Semiconductor Index. The index bounced off a three-month closing low.

Shares of Lam Research (LRCX) skyrocketed by 18 percent after the semiconductor equipment maker reported fiscal fourth quarter results that exceeded estimates.

Outside of the tech sector, airline stocks saw considerable strength amid a pullback by the price of crude oil, with the NYSE Arca Airline Index jumping by 5.2 percent.

Gold, brokerage and oil service stocks also turned strong performances, while pharmaceutical, housing and healthcare stocks showed significant moves to the downside.

Shares of Meta Platforms (META) also bucked the uptrend, with the Facebook parent plunging by 8 percent after providing disappointing revenue growth guidance.

On the U.S. economic front, the Commerce Department released a report showing consumer prices edged down in line with estimates in the month of June. The annual rate of growth also slowed in line with expectations.

Commodity, Currency Markets

Crude oil futures are jumping $1.47 to $85.06 a barrel after slumping $0.87 to $83.59 a barrel on Thursday. Meanwhile, after surging $63.60 to $4,160.60 an ounce in the previous session, gold futures are tumbling $56.10 to $4,104.50 an ounce.

On the currency front, the U.S. dollar is trading at 160.42 yen versus the 159.51 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1485 compared to yesterday’s $1.1527.

Asia

Asian stocks advanced on Friday, with South Korean and Japanese markets skyrocketing as investors returned to AI stocks.

Regional gains elsewhere across Asia were limited as Middle East tensions persisted, China manufacturing data disappointed and uncertainty prevailed over the U.S. interest rate outlook.

The dollar gained some positive traction as the yen sank following the Bank of Japan’s decision to keep rates on hold.

The 30-year U.S. Treasury yield hovered near 19-year highs, while short-end yields eased, steepening the curve amid growing doubts over the Federal Reserve’s ability to keep inflation in check.

Gold traded below $4,100 an ounce in Asian trade but headed for its first monthly gain in five months. Brent crude futures eased below $86 a barrel but were still on track to gain more than 20 percent for the month.

A drone strike on gas vessels at Egypt’s Damietta port has intensified fears of the U.S.-Iran conflict widening across the Middle East, drawing more countries into the roughly five-month-old war and posing threats to navigation through the Suez Canal, one of the last remaining export routes for Saudi oil.

After claiming a retaliatory attack on a U.S. base in Kuwait, Iran’s Islami Revolutionary Guard Corps said that Tehran’s military actions would persist until the complete eviction of U.S. “occupying and looting forces” from the region.

China’s Shanghai Composite Index advanced 0.7 percent to 3,832.26 despite lingering concerns over slowing economic growth.

Hong Kong’s Hang Seng Index finished marginally higher at 25,884.43, recovering early losses as an official survey showed China’s manufacturing activity unexpectedly slipped into contraction in July after five months of expansion, adding to signs of strain in the wider economy.

Japanese markets rallied as the yen reversed some of Thursday’s over 2 percent surge sparked by an apparent coordinated currency intervention from various authorities to haul the currency away from 40-year lows.

The Nikkei 225 Index shot up 4 percent to 64,362.02 following recent consecutive declines. The broader Topix Index closed 1.3 percent higher at 4,003.30 as the Bank of Japan left its policy rate unchanged at 1.00 percent and readings on retail sales and factory output painted a mixed picture of the economy.

Tech stocks delivered a strong performance, with flash memory maker Kioxia Holdings surging almost 18 percent after reporting blockbuster quarterly earnings. Technology investor SoftBank Group spiked 13.8 percent.

Seoul stocks skyrocketed as chip stocks staged a dramatic rally following stronger-than-expected cloud results from U.S. tech giants Microsoft and Amazon.

The Kospi Index soared 1,001.89 points, or 17.9 percent, to 6,595.45, posting record gains in both percentage and point terms after SK Group Chairman Chey Tae-won disclosed that he had bought 3,620 SK Hynix shares worth about 4.9 billion won on the open market.

SK Hynix shares skyrocketed almost 30 percent, while shares of Samsung Electronics jumped 26.8 percent, erasing losses from the previous three sessions.

Australian markets eked out marginal gains to cap their best showing in five months as rate hike worries faded. The benchmark S&P/ASX 200 inched up 0.1 percent to 8,976.80 and ended the month with a 2.3 percent gain.

The broader All Ordinaries Index closed up 0.2 percent at 9,137, led by materials, real estate and information technology stocks.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index dropped 0.5 percent to 13,699.28.

Europe

European stocks have risen to record highs on Friday as upbeat tech earnings helped ease concerns about AI returns.

The euro held near multi-week highs against the dollar after Eurostat data showed annual consumer inflation in the euro zone rose to 2.9 percent in July from 2.8 percent in June on higher energy costs, bolstering the case for the European Central Bank to raise interest rates again in September.

French consumer price inflation accelerated to 2.1 percent in July from 1.8 percent in June, according to preliminary estimate from INSEE. The rate was forecast to remain unchanged at 1.8 percent.

Elsewhere, U.K. house prices grew at a slower pace in July as geopolitical tensions and fears of interest rate hikes weighed on property demand, data from mortgage lender Nationwide Building Society revealed.

House prices registered an annual increase of 1.8 percent after rising 2.2 percent in June. Prices were expected to grow 1.9 percent.

While the French CAC 40 Index is up by 0.8 percent, the German DAX Index is up by 0.3 percent and the U.K.’s FTSE 100 Index is up by 0.2 percent.

Tech stocks topped the gainers list, with Infineon surging nearly 6 percent and ASML Holding climbing more than 2 percent.

German sensor and radar maker Hensoldt fell 2.7 percent amid profit taking after recent strong gains.

Sportswear maker Puma slumped 6 percent after posting lower sales for the second quarter.

France’s Saint-Gobain soared 7 percent after confirming its 2026 outlook.

Engie jumped 4.5 percent. The utility raised its full-year guidance after reporting better-than-expected first-half earnings.

Lender Credit Agricole advanced 3.3 percent after posting better-than-expected results for the second quarter.

Swiss specialty chemicals company Clariant rallied 2.1 percent after Q2 adjusted earnings beat forecasts.

Building materials group Holcim declined 2.2 percent despite the company surpassing its Q2 earnings forecasts.

Hilton Food rose 2.2 percent. The British food packaging company said it would sell Dalco Food B.V., its Netherlands-based vegan and vegetarian business, to Livekindly Production NL B.V. for a total consideration of 5.4 million pounds.

GKN Aerospace owner Melrose Industries dropped 2.6 percent after it warned of additional exceptional costs linked to chemical tank incident at its Garden Grove facility in the United States.

Property listing firm Rightmove rose 1.3 percent on share buyback news.

U.S. Economic News

MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of July at 9:45 am ET.

The Chicago business barometer is expected to dip to 55.0 in July from 56.7 in June, although a reading above 50 would still indicate growth.

At 10 am ET, the University of Michigan is due to release its revised reading on consumer sentiment in the month of July.

The consumer sentiment index for July is expected to be downwardly revised to 54.2 from a preliminary reading of 54.4, which was up from 49.5 in June.