Tech futures rise after Amazon and instant profits

  • U.S. technology futures rose on Friday, boosted by strong profits from Amazon and Snap.
  • The Nasdaq 100 posted its biggest one-day drop in 17 months on Thursday as Meta plunged 25%.
  • Investors were waiting for the jobs payroll to determine the resilience of the US economy.

U.S. tech futures rallied on Friday after strong profits from Amazon and Snap set the stage for a more bullish start the following day when the government releases its all-important report on employment in January.

Nasdaq 100 futures rose 0.8% in Europe, while S&P 500 futures rose 0.1% and Dow Jones futures fell 0.3%, after the Nasdaq 100’s biggest one-day drop since September 2020 on Thursday, when Facebook parent Meta saw more than $230 billion wiped off its market value after disappointing results.

Amazon stock jumped 13% in premarket trading on Friday as investors cheered its strong fourth-quarter results the day before, in which it raised the price of its Prime subscription service.

Snapchat’s parent company, Snap, meanwhile, soared as much as 60% in Friday’s premarket after posting its first-ever profitable quarter. Its shares last rose 51% after falling nearly 25% in regular trading on Thursday.

“The rollercoaster ride of financial markets is set to continue, with an expected rally in indices in Europe and the United States, as encouraging results from Amazon and Snap have laid the groundwork for a relief rally at the end of the month. ‘a tumultuous week,” said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown.

If the stock’s jump continues when markets open at 9:30 a.m. ET, Amazon would add nearly $180 billion in market value in what would be one of the biggest valuation gains in history. Its market cap was $1.41 trillion as of Thursday’s close.

“Amazon had much better luck reporting after-hours earnings,” Deutsche Bank strategists said in a note. “Remember when Amazonification was the alarm cry of the anti-inflation crowd? Well, now there’s evidence to the contrary.”

After a flurry of mixed earnings for Big Tech, investors were expecting Friday’s nonfarm payrolls report later in the day. Economists expect an increase of 150,000 in January, which would be the slowest growth rate since December 2020, as the Omicron variant and a severe labor shortage wreaked havoc on the labor market. job.

Industries like hospitality, leisure and healthcare are expected to be the hardest hit sectors, Hargreaves Lansdown said.

Slower employment growth would mean that the

Federal Reserve

may not have to take such an aggressive stance on monetary policy, which could bring relief to government bonds and battered tech stocks and cryptocurrencies.

A stronger reading, however, could reignite concerns that the Fed will need to act quickly to prevent the economy from overheating.

“One of the main highlights today will be the U.S. jobs report for January, which will be an important release as the Fed plans to begin takeoff next month,” Deutsche Bank said.

Oil rose Friday to seven-year highs as a winter storm swept across the United States, which could disrupt crude supplies exactly when demand is rising. while Brent gained 1.4% to trade around $92.35 a barrel.


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