Updated 2 min read
Techs jumped as US stock futures extended gains on Friday morning, after South Korean stocks roared back and Big Tech earnings revived optimism in the artificial intelligence trade.
Futures on the Dow Jones Industrial Average (YM=F) rose 0.6%, and those on the S&P 500 (ES=F) moved up 0.5%. Contracts for the tech-heavy Nasdaq-100 (NQ=F) surged 1.2% after South Korea’s KOSPI (^KS11) index jumped 14% overnight, triggering trading halts.
Following Microsoft’s (MSFT) historic 15% stock rally, shares of Amazon (AMZN) and Apple (AAPL) also swung after delivering earnings on Thursday. Amazon stock jumped 10% in premarket trade after its earnings beat expectations and its chip business expanded, while Apple stock fell 7%, as its Services and China revenue came up short.
The latest quarterly results from the “Magnificent Seven” companies showed that Big Tech continues to invest in AI, reassuring tech investors who had grown fearful of a slowdown in AI and higher interest rates. The four hyperscalers (Amazon, Microsoft, Meta (META), and Alphabet) forecast spending $720 billion to $745 billion cumulatively on capital projects in 2026.
Also on the earnings front, a slew of oil companies, including ExxonMobil (XOM) and Chevron (CVX), are expected to report windfalls in Q2, as the US-Iran war and the subsequent energy shock have kept oil prices elevated.
Oil prices turned higher as traffic as the Strait of Hormuz began to falter, after a reescalation in hostilities in recent days. US benchmark WTI crude futures (CL=F) last traded at around $84 per barrel and global benchmark Brent (BZ=F) futures rose to nearly $88 per barrel.
Higher energy and gas prices have weighed on consumers’ budgets, contributing to depressed sentiment. The next check on how Americans are feeling from the University of Michigan comes out at 10:00 a.m. ET.
