Nasdaq 100 futures rose 1.38% early Friday as blowout earnings from Amazon and Microsoft revived confidence in artificial-intelligence spending, a day after the Dow suffered its worst one-day drop since April 2025. Apple shares fell in premarket trading despite topping revenue estimates, and the rebound carried into Asian chip stocks overnight.
Nasdaq 100 futures rose 1.38% early Friday as Wall Street mounted a sharp rebound, with upbeat earnings from Amazon adding to the optimism. Futures tied to the Dow Jones Industrial Average added 283 points, or 0.54%, while S&P 500 contracts gained 0.57%.
Amazon and Microsoft power the tech surge
Amazon shares jumped more than 12% in premarket trading after the company posted second-quarter revenue that beat expectations, with strength in its cloud unit boosting confidence in continued AI spending. That momentum built on Thursday's session, when Microsoft climbed 16% on stronger-than-expected Azure growth, lifting AI-linked chipmakers broadly; the iShares Semiconductor ETF rose more than 8%.
Apple falls despite beating estimates
Apple moved in the opposite direction, trading more than 7% lower ahead of the opening bell. Its fiscal third-quarter revenue exceeded forecasts on a 22% jump in iPhone sales, yet a shortfall in services revenue dragged the stock down. Meta, which had sunk almost 8% in Thursday's session, was up almost 2.2% in premarket trading.
Wednesday's Fed decision triggered the selloff
The rebound follows a rough Wednesday, when the Dow dropped more than 1,100 points in its steepest one-day decline since April 2025. Selling picked up after the Federal Reserve left interest rates unchanged, feeding worry that officials were losing ground against inflation. The 30-year Treasury yield rose 6 basis points to above 5.2% that session, hovering near its highest level since 2007.
Rally extends into Asian markets
Even after the week's swings, the major U.S. averages remained on track to close higher, with the Nasdaq Composite up about 0.6% for the week heading into Friday. The rebound carried into Asia, where South Korea's Kospi soared over 15% as chipmakers SK Hynix and Samsung Electronics surged, and Japan's Nikkei 225 rose more than 3%.
Source: US Top News and Analysis
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