By Shristi Achar A and Shashwat Chauhan
(Reuters) – U.S. stock index futures rose on Tuesday thanks to gains in some growth and chip stocks, while positive earnings across several sectors kicked off gains for big technology companies later in the week.
Most mega-cap growth stocks, including Meta Platforms (NASDAQ:), Microsoft (NASDAQ:) and Tesla (NASDAQ:), rose between 0.5% and 1.3% in pre-market trading. market. The tech majors will release their quarterly numbers this week, with Tesla kicking off the cycle after markets close on Tuesday.
Early gains in some chip stocks also offered support to stocks, with Nvidia (NASDAQ:), Micron Technology (NASDAQ:) and Marvell (NASDAQ:) Technology rising between 1.0% and 1.4% %.
Apple (NASDAQ:) was an exception, down 0.2%, as market data showed smartphone shipments slumped 19% in China in the first quarter.
On the earnings front, General Motors (NYSE:) rose 3.4% after the automaker posted quarterly results that beat Wall Street’s targets and raised its annual forecast.
Spotify (NYSE:) gained 6.6% after the Swedish music streaming company beat quarterly revenue estimates.
GE Aerospace advanced 3.7% after the aerospace giant raised its full-year earnings forecast.
United Parcel Service (NYSE:) gained 1% after the package delivery company reported first-quarter earnings that beat estimates.
Danaher (NYSE:) rose 8.8% after the life sciences company beat expectations for quarterly earnings and sales.
U.S. stocks sold off sharply last week amid rising tensions in the Middle East and as traders reassessed rate cut expectations from the Federal Reserve.
“While further volatility can be expected, especially with ongoing attacks in the Middle East, we believe the gradually improving risk-return outlook for US equities continues to support our focus on seeking opportunities within and beyond the technology,” Mark Haefele, chief investment officer of UBS Global Wealth Management, said in a statement.
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The reading of the March personal consumption expenditures (PCE) index, the Fed’s preferred measure of inflation, will be released on Friday and will help ascertain the trajectory of the central bank’s monetary policy.
Money markets are currently pricing in interest rate cuts of just 39 basis points, down from 150 basis points seen at the start of the year.
On the data front, investors will await the S&P Global Composite Flash PMI data for April, expected shortly after the opening bell.
As of 7:06 a.m. ET, they were up 92 points, or 0.24%, they were up 16.5 points, or 0.33%, and they were up 65.5 points, or 0. 38%.
Among other stocks, Cadence Design (NASDAQ:) Systems fell 5.8% in premarket trading after the chip design software maker forecast second-quarter revenue below analysts’ estimates.
Nucor Corp (NYSE:) fell 6.3% after the steelmaker missed Wall Street estimates for first-quarter earnings.
Roblox gained 4.1% after JP Morgan upgraded the gaming platform from “neutral” to “overweight” amid significant monetization opportunities.
Hibbett jumped 18.6% after JD (NASDAQ:) Sports Fashion proposed to buy the athletic fashion retailer for about $1.08 billion.