Share futures rose in overnight trading Thursday, boosted by a jump in Apple shares, as Wall Street looked set to end a week of roller coasters on a high.
Dow Jones Industrial Average futures are up about 100 points. S&P 500 futures were up 0.3% and Nasdaq 100 futures were up 0.7%.
Apple shares jumped nearly 5% in after-hours trading after the company reported its biggest single quarter in revenue ever. Its sales jumped more than 11% even amid supply challenges and the lingering effects of the pandemic. Apple beat analyst estimates for sales in every product category except iPad.
The major averages have experienced greater intraday volatility each day this week as investors continue to view the Federal Reserve’s trend of tighter policy. Market fear gauge Cboe Volatility Index rallied to its highest level since October 2020 earlier this week and has traded above the 30 threshold.
The Dow has just experienced its ninth negative session in 10, down 0.3% for the week and possibly heading for its fourth consecutive negative week. The S&P 500 is down 1.62% in the week to date, while the tech-heavy Nasdaq Composite is down 1.4%, on track for a fifth straight week of losses.
The S&P 500 and Nasdaq are both in correction territory, 10.2% and 17.6% below their respective record highs.
Fed appointed on wednesday that it could soon raise rates for the first time in more than three years as part of a historically easy monetary policy broader tightening.
“The FOMC meeting did not yield any surprises in terms of monetary policy, however, it could be seen as more hawkish than expected as Chairman Powell suggested it was necessary to enter a phase of normalisation. policy ‘stable’,” Chris Hussey, an executive at Goldman Sachs, said in a note.
So far, the fourth-quarter earnings season has remained steady. Of the 145 S&P 500 companies that have reported so far, 79.3% topped analyst expectations, according to Refinitiv.
Chevron is set to report the numbers before the bell on Friday.
“For now, I’m determined not to go against the Fed. I’m bracing for strong market volatility and significantly more modest market returns,” said Brian Levitt, global market strategist at Invesco. .
