Wall Street seems unfazed by concerns about rising interest rates as major stock index futures were slightly higher in early pre-market trading on Monday, with hopes pinned on strong Big Tech earnings. Bargain hunters may be attracted by oversold conditions, anticipating positive surprises from tech giants like Tesla, Meta Platforms, Microsoft, and Alphabet reporting earnings this week.
Global markets are also reflecting optimism, with Asian markets (excluding China) closing higher and European stocks opening on a positive note.
In early pre-market trading on Monday, the Nasdaq 100 was up 0.76%, the S&P 500 rose 0.59%, the Dow gained 0.48%, and the R2K was up 0.60%. The SPDR S&P 500 ETF Trust rose 0.60% to $498.15, while the Invesco QQQ ETF gained 0.77% to $417.84.
Last week, concerns about rising bond yields, geopolitical tensions, and mixed earnings led to a pullback in the market, particularly in the tech sector. The Nasdaq Composite and the S&P 500 Index ended lower for the sixth consecutive session, with the Nasdaq Composite nearing its lowest closing level since late January.
Looking ahead, market analysts are keeping an eye on tech earnings reports and key inflation data this week. LPL Financial Chief Global Strategist Quincy Krosby highlighted the importance of tech earnings and inflation data in shaping market sentiment.
Key economic data to watch this week includes the personal income and spending report for March, the advance first-quarter GDP report, manufacturing and services sector PMIs for April, durable goods orders report for April, and housing market readings.
In premarket trading, Tesla and Li Auto saw declines following electric vehicle price cuts, while companies like Albertsons, Verizon, and Zions Bancorporation are among those reporting quarterly results. Crude oil futures fell slightly, gold futures dipped below $2,400, and the 10-year note yield edged up to 4.66%.
Overall, Asian stocks rallied, European markets advanced, and Bitcoin approached the $66K level following a halving event. Investors are eagerly awaiting earnings reports from major tech companies like Microsoft, Meta, Alphabet, and Tesla this week.