{"id":55370,"date":"2025-10-31T09:07:47","date_gmt":"2025-10-31T13:07:47","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/tech-earnings-fuel-friday-rally-as-fed-rate-cut-looms\/55370\/"},"modified":"2025-10-31T09:07:47","modified_gmt":"2025-10-31T13:07:47","slug":"tech-earnings-fuel-friday-rally-as-fed-rate-cut-looms","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-earnings-fuel-friday-rally-as-fed-rate-cut-looms\/55370\/","title":{"rendered":"Tech Earnings Fuel Friday Rally as Fed Rate Cut Looms"},"content":{"rendered":"

U.S. stock futures are broadly higher this Friday, October 31, 2025, signaling a positive start to the trading day as investors digest a wave of strong corporate earnings, particularly from the technology sector, and the Federal Reserve's recent interest rate decision. This premarket<\/a> optimism follows a mixed session on Thursday, with major indexes poised to conclude both the week and the month in positive territory.<\/p>\n

Premarket Trading and Futures Movements<\/h2>\n

Early Friday trading indicates a robust rebound, largely driven by better-than-expected results from tech giants. Futures on the Nasdaq 100 (NDX) surged, gaining approximately 1.14% as of 4:44 a.m. EDT, and later rising to 1.5% by 8:26 a.m. New York time. S&P 500<\/a> (SPX) futures also climbed, up around 0.63% to 0.9% in premarket<\/a> hours, while Dow Jones<\/a> Industrial Average (DJIA) futures saw more modest gains, rising between 0.04% and 0.3%. This upward momentum is a stark contrast to Thursday's session, where all three major indexes closed lower, with the Nasdaq Composite falling 1.57%, the S&P 500 losing 0.99%, and the Dow slipping 0.23% amidst concerns over increasing capital spending on artificial intelligence (AI).<\/p>\n

Major Market Indexes Performance<\/h2>\n

Despite Thursday's dip, the broader market remains on track for a strong finish to October. The S&P 500 is set to record a 2% gain for the month, with the Nasdaq advancing about 4.1% and the Dow climbing 2.4%. The Dow Jones Industrial Average is particularly notable, on track for its sixth consecutive monthly gain, marking its longest such streak since 2018. For the current week, the S&P 500 is up 0.45%, the Nasdaq has risen about 1.6%, and the Dow has gained around 0.7%.<\/p>\n

Upcoming Market Events<\/h2>\n

Today's economic calendar includes several key data releases that could influence market sentiment. Investors will be closely watching the U.S. Personal Income & Spending report for September, the Employment Cost Index for the third quarter, and the Chicago PMI for October, all due at 8:30 a.m. ET and 9:45 a.m. ET respectively.<\/p>\n

Adding to the macroeconomic backdrop, the Federal Reserve recently cut its benchmark interest rate by 25 basis points on Wednesday, October 29, bringing the federal funds rate to a range of 3.75% to 4.00%. This marks the second consecutive rate cut this year, with Fed Chair Jerome Powell cautioning against assuming another cut in December, emphasizing the need to monitor incoming data. Powell noted that inflation for goods has picked up, with the CPI rising to 3% for the 12 months ending September 2025. Separately, the Federal Reserve also announced plans to reorganize its supervision and regulation division, reducing staff by approximately 30% by the end of 2026, primarily through attrition.<\/p>\n

On the earnings front, several major companies are scheduled to report today, including energy giants Exxon Mobil (XOM<\/a>) and Chevron (CVX<\/a>), as well as AbbVie (ABBV<\/a>) and Colgate-Palmolive (CL<\/a>).<\/p>\n

Major Stock News and Corporate Announcements<\/h2>\n

The tech sector is once again dominating headlines. After the market close on Thursday, Apple (AAPL<\/a>) and Amazon (AMZN<\/a>) delivered blockbuster earnings reports, significantly boosting investor confidence. Amazon shares soared over 13% in premarket trading, on track for an all-time high, after reporting a 20% increase in its cloud revenue, exceeding expectations. Apple shares rose about 3% following strong quarterly earnings and a positive outlook for iPhone sales in the December quarter. This positive news helped to offset the previous day's declines, which saw Meta Platforms (META<\/a>) plunge 4.5% and Microsoft (MSFT<\/a>) drop 3.3% after their earnings reports raised concerns about increasing AI-related capital expenditure.<\/p>\n

Adding to the tech momentum, Netflix (NFLX<\/a>) stock spiked 3.5% in premarket trading after announcing a 10-for-one stock split aimed at making its shares more accessible to retail investors. Nvidia (NVDA<\/a>), a key player in the AI chip market, also made news by unveiling new AI deals with South Korean firms, extending its global push to expand AI infrastructure.<\/p>\n

In the energy sector, Exxon Mobil (XOM<\/a>) announced third-quarter 2025 earnings of $7.5 billion, or $1.76 per share, with strong cash flow from operating activities. Chevron (CVX<\/a>) is also reporting today, with early indications suggesting profits from its Hess Corp. acquisition boosting oil production and cash flow. LyondellBasell Industries (LYB<\/a>) reported a net loss of $890 million for Q3 2025, or $1.01 per share excluding identified items, and is continuing its Cash Improvement Plan. Cenovus Energy Inc. (CVE<\/a>) reported record Upstream production and Downstream crude throughput in its third-quarter results.<\/p>\n

Other notable stock movements include Reddit (RDDT<\/a>) popping 12% after better-than-expected results, Cloudflare (NET<\/a>) surging 8%, and Western Digital (WDC<\/a>) jumping 11%. Cryptocurrency-related firms MicroStrategy (MSTR<\/a>) and Coinbase Global (COIN<\/a>) were up 7% and 4% respectively, with Bitcoin trading around $110,000. Conversely, Rubbermaid parent Newell Brands (NWL<\/a>) sank 18%.<\/p>\n

Economic Backdrop<\/h2>\n

The U.S. 10-year Treasury yield was up, floating near 4.11% on Friday, marking a slight increase from the previous session. This follows the Fed's recent rate cut and Chair Powell's cautious stance on future cuts.<\/p>\n

Crude oil prices were trending lower, with WTI crude hovering near $60.41 to $60.50 per barrel, and Brent crude around $64.30 to $64.74 a barrel. Oil prices are on track for a third consecutive monthly decline, influenced by a stronger U.S. dollar, concerns over weak demand, potential oversupply, and a hawkish Fed stance. Manufacturing activity in China, the world's largest oil importer, contracted for a seventh consecutive month, further weighing on sentiment. An upcoming OPEC+ meeting this weekend is expected to see the production alliance boost output again, which could put further pressure on prices. Gold<\/a> Spot U.S. dollar price increased to nearly $4,026 per ounce.<\/p>\n

Overall, Friday's market open is expected to be buoyed by strong tech earnings, providing a positive close to October despite ongoing macroeconomic uncertainties and concerns over AI spending.<\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. stock futures are broadly higher this Friday, October 31, 2025, signaling a positive start to the trading day as 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