Tech Earnings Fuel Friday Rally as Fed Rate Cut Looms

Core Insights - U.S. stock futures are showing broad gains, driven by strong corporate earnings, particularly in the technology sector, and the Federal Reserve's recent interest rate cut [1][5] Premarket Trading and Futures Movements - Nasdaq 100 futures surged approximately 1.14% to 1.5%, S&P 500 futures rose by 0.63% to 0.9%, while Dow Jones futures saw modest gains of 0.04% to 0.3% [2] - This rebound contrasts with Thursday's session where major indexes closed lower, with the Nasdaq Composite down 1.57%, S&P 500 down 0.99%, and Dow down 0.23% [2] Major Market Indexes Performance - The S&P 500 is set to record a 2% gain for October, Nasdaq up about 4.1%, and Dow climbing 2.4% [3] - The Dow is on track for its sixth consecutive monthly gain, the longest streak since 2018 [3] Upcoming Market Events - Key economic data releases include the U.S. Personal Income & Spending report for September, Employment Cost Index for Q3, and Chicago PMI for October [4] Federal Reserve Actions - The Federal Reserve cut its benchmark interest rate by 25 basis points to a range of 3.75% to 4.00%, marking the second consecutive cut this year [5] - Fed Chair Jerome Powell noted inflation for goods has risen, with CPI at 3% for the 12 months ending September 2025 [5] Earnings Reports - Major companies reporting include Exxon Mobil, Chevron, AbbVie, and Colgate-Palmolive [6] - Apple and Amazon reported strong earnings, with Amazon shares up over 13% in premarket trading due to a 20% increase in cloud revenue [7] - Apple shares rose about 3% following strong quarterly earnings and a positive outlook for iPhone sales [7] Notable Stock Movements - Netflix stock spiked 3.5% after announcing a 10-for-one stock split [8] - Nvidia announced new AI deals with South Korean firms, enhancing its global AI infrastructure [8] - Exxon Mobil reported Q3 earnings of $7.5 billion, or $1.76 per share [9] - LyondellBasell Industries reported a net loss of $890 million for Q3 2025 [9] - Reddit shares rose 12% after better-than-expected results, while Cloudflare and Western Digital saw increases of 8% and 11% respectively [10] Economic Backdrop - U.S. 10-year Treasury yield increased to around 4.11% [11] - Crude oil prices are trending lower, with WTI crude around $60.41 to $60.50 per barrel, and Brent crude at $64.30 to $64.74 per barrel [12]