Market Movers: Tech Earnings Surge as Fed Eyes Subdued Payroll Growth

By / / Breaking News

This update was written automatically with AI from market data and news wire reports, and published without review by a person.

Key Takeaways

  • Cloudflare (NET) and Airbnb (ABNB) shares surged 20% and 13.5% respectively in pre-market trading following significant earnings beats and robust forward guidance.
  • US Nonfarm Payrolls for October are projected to rise by a modest 65,000, a figure that could solidify expectations for a 25-basis-point rate hike by the Federal Reserve in December.
  • Eli Lilly (LLY) and Hims & Hers (HIMS) announced a landmark agreement to expand access to obesity drugs Zepbound and Foundayo directly through the Hims & Hers platform.
  • Firefly Aerospace (FLY) secured a massive $1.3 billion rocket engine deal with AST SpaceMobile (ASTS), marking a transformational milestone for the commercial space sector.
  • DraftKings (DKNG) shares plummeted 24% after reporting a wider-than-expected loss and lowering its full-year revenue outlook.

Tech and Growth Stocks Lead Pre-Market Surge

Cloudflare (NET) emerged as a top performer, jumping 20% after reporting its "best quarter ever" with revenue of $782.5 million (up 39% YoY) and raising its full-year guidance. The company officially crossed the $3 billion annualized revenue milestone, driven by high demand for its AI-native development platform. Similarly, Airbnb (ABNB) saw its stock rise 13.5% as it reaccelerated growth with an 18.9% revenue increase and a new $12 billion share repurchase authorization.

In the semiconductor and infrastructure space, Lam Research (LRCX) climbed 11% after its board approved a massive $25 billion share repurchase program. IREN (IREN) also rallied 16.5% as its AI Cloud revenue nearly tripled to $200 million, despite some customer-requested design changes pushing its $4 billion ARR target into early 2027.

Mixed Results for Consumer and Gaming Platforms

DraftKings (DKNG) faced a sharp sell-off, dropping 24% after reporting an adjusted loss of $0.53 per share, significantly wider than the $0.39 loss analysts expected. The company also trimmed its 2026 revenue guidance to a midpoint of $6.45 billion, citing a softer-than-expected quarter. Lyft (LYFT) also struggled, falling 7% after a surprise net loss of $9.7 million, despite reaching record active rider numbers.

In the apparel sector, Under Armour (UAA) shares fell 10.5% following a revenue miss and a downward revision to its gross margin outlook. Conversely, Moderna (MRNA) rose 3.7% after posting its first profitable quarter in years, fueled by international COVID vaccine deliveries and a raised full-year revenue growth outlook of 15% to 25%.

Macro Outlook: Fed and BOE Policy in Focus

Investors are closely watching the US Employment Situation report for October, with a median estimate of 65,000 new jobs. While hiring remains subdued compared to historical averages, the unemployment rate is expected to hold steady at 4.2%. This stability, paired with firm wage growth, is likely to keep the Federal Reserve on track for a quarter-point rate hike in December.

Across the Atlantic, Bank of England Chief Economist Huw Pill signaled a data-driven approach for 2027, stating that interest rates could stay on hold or even fall if UK growth stalls. Pill emphasized that the decision on a second rate hike will play out over the coming weeks as the bank monitors "second-round effects" and energy price pressures within the system.

Strategic Moves and Partnerships

Eli Lilly (LLY) and Hims & Hers (HIMS) have entered a strategic partnership to sell branded obesity medications directly on the Hims & Hers site. This move, which sent HIMS shares up 7.5%, eliminates friction for patients seeking Zepbound and Foundayo. In another notable corporate disclosure, Alphabet (GOOGL) revealed a $548 million stake in Qualcomm (QCOM), causing the chipmaker's stock to rise 3% in early trading.

Finally, the commercial space industry saw a major development as Firefly Aerospace (FLY) signed a $1.3 billion agreement to provide 36 rocket engines to AST SpaceMobile (ASTS). The deal provides Firefly with critical funding to accelerate its launch vehicle production while giving AST SpaceMobile greater control over its satellite launch schedule.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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