U.S. stock futures indicated a rebound on Friday following a recent setback driven by the technology sector. Investors are anticipating a significant reshuffling of a key index.
Dow Jones Industrial Average Futures
Dow Jones Industrial Average futures (YM00, +0.10%) climbed 38 points, or 0.1%, to 35,439.
S&P 500 Futures
S&P 500 futures (ES00, +0.20%) gained 10 points, or 0.2%, reaching 4,576.
Nasdaq 100 Futures
Nasdaq 100 futures (NQ00, +0.37%) rose by 67 points, or 0.4%, to 15,659.
On Thursday, the Dow Jones Industrial Average (DJIA, +0.47%) advanced by 164 points, or 0.47%, closing at 35,225. However, the S&P 500 (SPX, -0.68%) experienced a decline of 31 points, or 0.68%, settling at 4,535. The Nasdaq Composite (COMP, -2.05%) faced a significant drop of 295 points, or 2.05%, to 14,063.
The markets struggled due to disappointing results from prominent companies such as Netflix (NFLX, -8.41%), Taiwan Semiconductor Manufacturing (TSM, -5.05%), Tesla (TSLA, -9.74%), and IBM (IBM, +2.14%).
Louis Navellier, the chairman and founder of Navellier & Associates, commented on the current market’s high expectations. He stated that even when a company surpasses its expectations and provides an optimistic outlook, it can still experience a decline if there are any concerns or worries. Navellier specifically cited Tesla as an example.
Additionally, there is apprehension surrounding the upcoming Nasdaq 100 rebalancing, which is scheduled to take place on Friday after the market’s close. The changes will come into effect on Monday’s opening. Another factor impacting market sentiment is the expiration of approximately $2.3 trillion worth of U.S.-listed options.
Navellier further noted that top tech stocks might face a setback on Monday due to the Nasdaq realignment. Nvidia (NVDA, -3.31%) and Microsoft (MSFT, -2.31%) will be most affected by the rebalancing.
No significant economic data is set to be released on Friday. However, earnings reports are expected from companies such as American Express (AXP, -0.01%) and Schlumberger (SLB, -0.17%).
