Investing.com— U.S. Stock Index Futures Rise

U.S. stock index futures rose in evening deals on Tuesday, supported by a surge in Google owner Alphabet after the tech giant reported strong earnings that set a positive tone for upcoming announcements from its peers.

Futures rose after buying in tech stocks led the Nasdaq to hit a record high, although other sectors remained mostly weaker as risk appetite stayed constrained ahead of the 2024 presidential election and numerous significant economic readings scheduled for this week.

• S&P 500 Futures rose 0.2% to 5,883.0 points.
• Nasdaq 100 Futures rose 0.2% to 20,737.25 points by 19:17 ET (23:17 GMT).
• Dow Jones Futures rose 0.1% to 42,487.0 points.

Alphabet Hits Over 3-Month High on Strong Earnings

Class A shares of Alphabet Inc (NASDAQ: GOOGL) surged 5.5% in aftermarket trading to an indicated three-month high of $179.0. The tech giant reported stronger-than-expected earnings for the September quarter, claiming that its artificial intelligence investments were yielding positive results.

Its cloud business, closely linked to AI, grew at its fastest rate in eight quarters, while election-related spending significantly boosted advertisement sales, particularly on YouTube. Strong earnings from Alphabet set an optimistic tone for upcoming earnings reports from its tech peers, including Meta Platforms Inc (NASDAQ: META) and Microsoft Corporation (NASDAQ: MSFT) reporting on Wednesday, followed by Amazon.com Inc (NASDAQ: AMZN) and Apple Inc (NASDAQ: AAPL) on Thursday.

However, other earnings reports on Tuesday were less optimistic; chipmaker AMD (NASDAQ: AMD) saw its shares slide nearly 8% after its guidance for the current quarter failed to impress.

Wall St Mixed Amid Election and Rate Jitters

Wall Street indexes saw a mixed closing on Tuesday, as investors favored technology stocks while remaining cautious in other sectors. The NASDAQ Composite climbed 0.8% to a record-high close of 18,717.58 points, and the S&P 500 rose 0.2% to 5,832.92 points. In contrast, the Dow Jones Industrial Average fell 0.4% to 42,233.05 points.

Investors remained wary of economically sensitive sectors ahead of essential data releases this week. Third-quarter GDP data is scheduled for Thursday, while PCE price index data— the Federal Reserve’s preferred inflation measure— and nonfarm payrolls data are due on Friday. These readings are expected to influence outlooks on interest rates, with a Fed meeting next week predicted to result in a smaller rate cut of 25 basis points.

Market volatility is also expected to increase in anticipation of the 2024 presidential election, which is set for November 5. Recent polls suggest a competitive race between Donald Trump and Kamala Harris, with Trump gaining some momentum according to prediction markets.