Investing.com-- U.S. stock index futures rose in evening deals on Tuesday, underpinned by a surge in Google owner Alphabet after the technology giant clocked strong earnings that set a positive tone for upcoming prints from its peers.
Futures rose after buying in tech stocks saw the Nasdaq hit a record high, although other sectors were mostly weaker as risk appetite remained strained before the 2024 presidential election and a barrage of key economic readings this week.
S&P 500 Futures rose 0.2% to 5,883.0 points, while Nasdaq 100 Futures rose 0.2% to 20,737.25 points by 19:17 ET (23:17 GMT). Dow Jones Futures rose 0.1% to 42,487.0 points.
Alphabet hits over 3-mth high on strong earnings
Class A shares of Alphabet Inc (NASDAQ:GOOGL) surged 5.5% in aftermarket trade to an indicated three-month high of $179.0.
The tech giant clocked stronger-than-expected earnings for the September quarter, while stating that its artificial intelligence investments were now bearing fruit.
Its cloud business- which is closely linked to AI- grew at its fastest pace in eight quarters, while election-related spending also boosted advertisement sales, especially on YouTube.
Strong earnings from Alphabet set a positive tone for upcoming earnings from its tech peers, which are due in the coming days.
Meta Platforms Inc (NASDAQ:META) and Microsoft Corporation (NASDAQ:MSFT) are set to report on Wednesday, followed by Amazon.com Inc (NASDAQ:AMZN) and Apple Inc (NASDAQ:AAPL) on Thursday.
But other earnings on Tuesday were less optimistic. Chipmaker AMD (NASDAQ:AMD) slid nearly 8% after its guidance for the current quarter underwhelmed.
Wall St mixed amid election, rate jitters
Wall Street indexes marked a mixed close on Tuesday, as investors piled into technology stocks, but avoided most other sectors.
The NASDAQ Composite rose 0.8% to a record-high close of 18,717.58 points, while the S&P 500 rose 0.2% to 5,832.92 points. But the Dow Jones Industrial Average lagged, falling 0.4% to 42,233.05 points.
Investors were wary of economically sensitive sectors before a slew of key data prints this week. Third-quarter gross domestic product data is due on Thursday, while PCE price index data- the Federal Reserve’s preferred inflation gauge- and nonfarm payrolls data are due on Friday. The three readings are likely to factor into the outlook for interest rates, and come before a Fed meeting next week where the central bank is widely expected to cut rates by a smaller 25 basis points.
Volatility in stock markets is also expected to pick up in anticipation of the 2024 presidential election, with voting set for November 5. Donald Trump and Kamala Harris are set for a tight race, although recent polls and prediction markets showed Trump gaining some ground.