Market Pause: S&P 500 Futures React to Apple’s Soft Guidance

U.S. stock index futures remained steady on Friday ahead of the release of October payrolls data, following weaker guidance from tech giant Apple.

Market Movements:

  • Dow Jones Industrial Average futures (YM00, 0.41%) inched up by 13 points to 33,927.
  • S&P 500 futures (ES00, 0.40%) dropped 7 points to 4,329.
  • Nasdaq 100 futures (NQ00, 0.35%) decreased by 52 points to 14,946.
  • On the previous day, major indices saw significant gains: DJIA rose by 565 points to 33,839, S&P 500 increased by 80 points to 4,318, and Nasdaq Composite gained 233 points to 13,294.

Market Dynamics: The S&P 500 closed above its 200-day moving average, resting at 4,245.

Market Drivers:

The stock and bond markets witnessed a surge due to several key factors: lower-than-expected debt issuance plans by the U.S. Treasury, signals from the Federal Reserve indicating a potential halt in interest-rate hikes, and softer economic reports.

The positive bond market outlook led to continued strong gains in stocks, notably in technology shares like those in the ARK Innovation ETF and regional banks within the SPDR S&P Regional Banking ETF.

The market’s future trajectory depends on the forthcoming October nonfarm payrolls report, projected by experts to show 170,000 jobs added, an unemployment rate of 3.8%, and hourly wage growth of 0.3%.

However, Apple’s underwhelming revenue and sales forecasts below Wall Street estimates for the current fiscal first quarter may pose a challenge, potentially affecting the market’s direction.

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