U.S. stock index futures were slightly higher in overnight trading on Thursday as a broad rotation into heavy technology stocks appeared to ease ahead of a string of key earnings from the sector next week.
But sentiment remained fragile after disappointing earnings from Netflix (NASDAQ:), while uncertainty over U.S. politics also weighed amid growing calls for President Joe Biden to withdraw his re-election bid.
The Standard & Poor’s 500 index rose about 0.1% to 5,602.0 points, while it rose about 0.3% to 19,946.50 points by 19:47 ET (23:47 GMT). It rose slightly to 40,985.0 points.
Tech stocks steady after heavy losses
Big tech stocks were flat in after-market trading, after posting sharp losses over the past two sessions. Shares of blue chips Apple (NASDAQ:) and Microsoft (NASDAQ:) were slightly higher in afternoon trading.
A combination of profit-taking and a shift into sectors more poised to benefit from an economic recovery has hurt big tech stocks over the past two sessions.
Netflix shares fell slightly in after-market trading after second-quarter earnings came in below expectations.
Shares of chipmakers were also shaken by the prospect of more US sanctions on China, particularly on the country’s chipmaking sector.
Technology stocks took a heavy toll on Wall Street, with the Nasdaq Composite Index down 0.8% to 5,544.59 on Thursday. The Nasdaq Composite Index fell 0.7% to 17,874.45, while the Nasdaq Composite Index fell 1.3% to 17,874.45.
Tech Heavy Earnings Are Coming, TSMC Boosts Chipmakers
All eyes are now on next week’s key earnings from the tech sector. Microsoft, Google’s parent Alphabet and Tesla are all set to report earnings on Tuesday, with the two tech giants set to provide more signals on artificial intelligence after a huge surge in market value over the past year.
Tesla will be watched to see how well it can handle the sharp drop in sales this year.
Upbeat earnings from chipmakers ASML Holdings (NASDAQ:) and TSMC (NYSE:) helped boost chip stocks on Thursday. TSMC rose slightly after reporting stronger-than-expected second-quarter earnings, and the world’s largest chipmaker also raised its outlook on strong demand driven by artificial intelligence.
Political struggle in focus as calls grow for Biden to drop out of race
The 2024 presidential race has also been a focus for Wall Street, amid growing calls from members of the Democratic Party for Biden not to run for re-election.
Former House Speaker Nancy Pelosi reportedly told House Democrats that Biden could be persuaded to drop out of the race on Thursday.
Concerns about Biden’s health, coupled with the growing popularity of Republican candidate Donald Trump, have raised doubts about whether Biden will be able to win a second term.