U.S. futures rose Friday morning as shares of Google's parent company Alphabet and Microsoft soared in after-hours trading.
The tech giants reported better-than-expected quarterly profits after the bell, and Alphabet announced its first cash dividend. Shares were up more than 11% premarket. Microsoft rose nearly 4%.
The announcement comes a day after major U.S. stock indexes fell, weighed down by a one-two punch of economic indicators pointing to slowing growth and persistent inflation.
Also dragging the market down on Thursday was Facebook and Instagram parent company Metaplatform, whose shares fell more than 10 percent as investors spooked by the company's promise to increase spending on artificial intelligence technology.
Investor enthusiasm for AI is significantly high, driven by its transformative potential across a variety of sectors including healthcare, finance, and technology. This is clearly visible in the stock market, where companies that are leaders or innovators in AI technology have a greater impact on the bottom line.
For example, companies like Alphabet and Amazon have become hot spots for investors due to their significant investments and advancements in AI. Alphabet has not only invested billions in his AI startup, but is also expanding his AI capabilities into new areas such as self-driving cars and AI-powered chatbots. Similarly, Amazon leverages AI in many aspects of its operations, from e-commerce algorithms to cloud computing services provided by Amazon Web Services. This includes substantial AI integration.
Overall, the general investor sentiment regarding AI is one of optimism and strategic positioning aimed at capitalizing on the growth trajectory that AI technology is expected to follow in the coming years. There are significant risks involved for these AI leaders to live up to expectations and justify their stock prices.
On Friday, investors will be watching for the release of core inflation data in the morning, which could influence the Federal Reserve's decision to cut interest rates as it aims to reach its 2% inflation target. Become.
Oil giants Exxon Mobil and Chevron are scheduled to report quarterly results Friday morning.
Next week is set to be another profit-packed extravaganza for investors, with an emphasis on consumer goods rather than Big Tech. Two of his companies of the so-called Magnificent Seven, Amazon and Apple, report their results quarterly.
Earnings highlights to watch next week:
- Monday: Domino's Pizza, Paramount, SoFi Technologies
- Tuesday: Amazon, Eli Lilly, Coca-Cola, McDonald's, Starbucks, Stellantis, Mondelez, PayPal, 3M
- Wednesday: Mastercard, Pfizer, CVS, Marriott, DoorDash, Kraft Heinz Company, Pizza Hut, KFC's parent company Yum! Brands, eBay
- Thursday: Apple, pharmaceutical companies Novo Nordisk, Shell, Moderna
- Friday: Berkshire Hathaway, AMC
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Newsweek is committed to challenging conventional wisdom, finding common ground and finding connections.