Futures for the S&P 500 and Nasdaq show a slight increase, suggesting a potentially favorable opening for the last trading day of October. Shares of both Amazon and Apple are experiencing an uptick in premarket trading, as the quarterly earnings and forecasts from these tech giants receive a positive response from investors. Nvidia has announced a new supply agreement with South Korea, coinciding with a contraction in factory activity in China that exceeds expectations.

Dow futures indicated a predominantly upward trajectory on Friday, as investors concluded October with a new set of technology earnings and indications of easing global trade tensions to evaluate. As of 02:20, the Dow futures contract exhibited minimal movement, whereas S&P 500 futures increased by 42 points, reflecting a rise of 0.6%, and Nasdaq 100 futures rose by 290 points, corresponding to a gain of 1.1%. The primary indices experienced a downturn in the previous session, influenced by a drop in the stock prices of Meta Platforms, the parent company of Facebook, and the software behemoth Microsoft. Both disclosed intentions to increase their already elevated expenditures on artificial intelligence in their recent earnings reports, intensifying certain investor apprehensions regarding the potential for compressed profit margins and the ambiguity surrounding the timeline for realizing returns from these investments. Meta experienced a significant drop of 11.3%, marking its largest single-day decline in three years, while Microsoft saw a decrease of 2.9%. In contrast, Alphabet, the parent company of Google, rose by 2.5% following results that exceeded expectations, driven by robust performance in advertising and cloud computing. Federal Reserve Chair Jerome Powell’s assertion that another interest rate cut in December was “far from” a foregone conclusion tempered expectations for a more accommodative monetary policy, while the trade agreements reached at a long-awaited meeting between U.S. President Donald Trump and Chinese President Xi Jinping had minimal impact on overall sentiment. Nvidia, a prominent player in the AI sector, whose rapid ascent led it to become the first company to surpass a market value of $5 trillion earlier this week, also experienced a decline of 2%.

Amazon attributed robust demand in AI and core infrastructure as a key factor behind its quarterly earnings exceeding expectations, resulting in a significant increase in shares during premarket U.S. trading. In the third quarter, revenue increased by 13% compared to the previous year, reaching $180.2 billion, surpassing the anticipated figure of $177.75 billion. The e-commerce giant reported earnings of $1.95 per share, surpassing analysts’ expectations of $1.56, even in the face of expenses associated with a one-time charge from a legal settlement and workforce reductions. Although perceived by certain analysts as a somewhat sluggish participant in the AI arms race, the revenue growth of Amazon Web Services, which has become significantly linked to its aspirations in this emerging technology, reached 20%, marking the most rapid expansion since 2022. In the current quarter, encompassing the crucial holiday shopping season, sales are projected to range from $206 billion to $213 billion, suggesting a growth rate of 10% to 13%, which aligns with prevailing market expectations. It forecasted operating income in the range of $21 billion to $26 billion. The group reported that it expended nearly $90 billion in capital expenditures during the first three quarters of the year, as it aims to enhance its AI offerings, which are deemed crucial for the future success of the business. For the entire year, expenditures are projected to total $125 billion.

Apple’s shares experienced an increase in premarket trading, supported by a positive forecast from the California-based technology company. The company, a significant traditional beneficiary of the end-of-year shopping season, indicated that it now anticipates total revenue growth of 10% to 12% during the holiday quarter, surpassing Wall Street projections. The forecasts were fundamentally based on the anticipation that consumers would predominantly choose to upgrade to Apple’s latest iteration of its flagship device, the iPhone 17. In the lead-up to Thursday’s after-hours earnings release, recent data indicated that the iPhone 17 has garnered a positive reception globally, surpassing demand for its predecessor models, especially in the crucial U.S. and Chinese markets. In an interview, CEO Tim Cook asserted that the iPhone 17 is poised to deliver the most successful December quarter “in the history of the company.” iPhone sales reached $49 billion in the September quarter, falling short of projections, as CFO Kevan Parekh indicated challenges stemming from supply constraints. Apple disclosed its fiscal fourth-quarter earnings at $1.85 per share, accompanied by revenue totaling $102.5 billion. Analysts had projected figures of $1.76 billion and $1.02 billion, respectively. Investments in AI, where Apple is perceived to potentially lag, are expected to increase, and this has been identified as a factor contributing to the projection that operating expenses for the December quarter will exceed forecasts by $1.5 billion.

Nvidia has announced plans to deliver over 260,000 of its advanced AI chips to the South Korean government and prominent corporations in the region, including Samsung Electronics. In collaboration with SK Group and Hyundai Motor, Samsung plans to implement up to 50,000 AI chips within smart factories across the nation. Concurrently, the South Korean government intends to utilize its own allocation of Nvidia’s latest processors to bolster domestic AI development. “Just as Korea’s physical factories have inspired the world with sophisticated ships, cars, chips and electronics, the nation can now produce intelligence as a new export that will drive global transformation,” stated Nvidia CEO Jensen Huang. Huang, having engaged with Korean President Lee Jae Myung and corporate leaders during an event in Gyeongju, refrained from disclosing specifics regarding the deal’s value or the timeline for the delivery of supplies. Friday’s announcement follows a surge of recent dealmaking that has reinforced Nvidia’s status as a leading figure in the AI phenomenon.

In October, Chinese manufacturing activity contracted more than anticipated, according to official purchasing managers index data, as subdued domestic demand and a deceleration in economic momentum persistently undermined the sector. In October, the Manufacturing PMI decreased to 49.0, falling short of the anticipated 49.6 and down from the 49.8 recorded in September. A reading below 50 signifies contraction, as China’s manufacturing sector has remained in this range for seven consecutive months. The PMI data, a sentiment-based survey, indicated that Chinese manufacturers continued to exercise caution in light of weak domestic demand and elevated U.S. trade tariffs on exports. Friday’s data highlighted the potential necessity for increased economic support from Beijing, as China contends with persistent deflation, subdued private spending, and declining private investment.