Stock futures rally as investors gear up for jobs report, key earnings: Live updates
The first week of August kicks off with the July jobs report and another batch of key earnings reports.
U.S. equity futures climbed on Sunday as investors prepared for the July jobs report and a series of earnings releases ahead of August trading. Dow Jones Industrial Average futures surged 200 points, or 0.4%, while S&P 500 futures increased 0.5% and Nasdaq-100 futures climbed 0.8%. Oil prices dropped following President Donald Trump's announcement that he had canceled a planned attack on Iran.
Reports from U.S. media indicated Trump was planning a new wave of strikes, as hopes for a negotiated resolution to the conflict waned and energy prices rose. Brent crude futures fell $3.52 to $84.41, and U.S. West Texas Intermediate crude decreased by $3.49 to $81.18 per barrel. The three major indexes finished higher on Friday, with the Dow advancing 276.97 points, or approximately 0.53%, to 52,485.03.
S&P 500 closed 0.7% higher at 7,489.72, and Nasdaq Composite surged 1% to 25,373.85. As the market approached record highs, traders are now considering the sustainability of the rally's momentum. While major tech firms delivered on earnings, investors are becoming increasingly cautious about paying high valuations without clear evidence of earnings growth due to increased AI-related spending.
Megan Horneman, chief investment officer at Verdence Capital Advisors, noted that investors are less willing to overlook mounting AI-related expenses without concrete indications of earnings improvements. "The main takeaway I got from those tech earnings is that investors are not prepared to keep paying and paying without any clear insight into how this capex spending will affect earnings," Horneman stated on CNBC's "Fast Money" on Friday.
As this week's earnings reports are expected from companies such as McDonald's, Kraft Heinz, Costco Wholesale, and Walt Disney, technology firms like Palantir and semiconductor giants such as Advanced Micro Devices may provide more insights into the broader economic landscape. Investors will also digest labor market data next week, including the much-awaited monthly jobs report on Friday.
Economists forecast that U.S. nonfarm payrolls will have added 87,500 jobs in July, up from 57,000 positions in June. The unemployment rate is anticipated to rise to 4.3% from 4.2%.
Written by urgent.news from CNBC World's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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