JAN 31 – U.S. stock index futures moved higher in premarket trading on Friday, fueled by optimism over Apple’s latest earnings and forward guidance. Meanwhile, investors remained focused on key inflation data set to be released later in the day, which could provide further clarity on the Federal Reserve’s monetary policy direction.
Apple Inc. (AAPL) surged 3.4% in premarket trading following a strong earnings report on Thursday. The company’s executives expressed confidence in a rebound in iPhone sales, particularly with the anticipated introduction of artificial intelligence-driven features. Analysts at Deutsche Bank noted that investors found reassurance in Apple’s forecast, which projects revenue growth in the low- to mid-single-digit range for the upcoming quarter.
Market participants are also closely watching the December personal consumption expenditures (PCE) price index report, scheduled for release at 8:30 a.m. ET. The data is expected to show a 0.3% monthly increase in overall inflation and a 2.6% annual rise. Core PCE, which strips out the more volatile food and energy categories, is forecast to increase by 0.2% from the previous month while maintaining a steady 2.8% year-over-year rate. These figures hold significant weight in the Federal Reserve’s assessment of inflation and interest rate decisions.
Earlier this week, the Fed opted to keep interest rates unchanged. Fed Chair Jerome Powell emphasized that rate cuts would not be rushed, with policymakers requiring more supportive data on inflation and employment before making adjustments.
Beyond Apple, semiconductor giant Intel Corp. (INTC) gained 1.3% in premarket activity after reporting stronger-than-expected results for the December quarter. While its revenue outlook for the current quarter came in below estimates, investors found some relief in the company’s ability to surpass expectations in a challenging environment.
Energy stocks had a mixed showing, with Chevron Corp. (CVX) slipping 2.2% after its fourth-quarter earnings missed projections. On the other hand, Exxon Mobil Corp. (XOM) edged up 0.8% as its earnings beat forecasts, offering some support to the sector.
As of 6:41 a.m. ET, Dow Jones futures had climbed 150 points, or 0.33%, while S&P 500 futures gained 28 points, or 0.46%. Meanwhile, Nasdaq 100 futures outperformed, adding 173.25 points, or 0.8%, largely driven by Apple’s strong premarket rally.
Despite the positive momentum on Friday, the S&P 500 and Nasdaq remain on track for weekly losses. The tech sector has faced significant selling pressure this week, triggered by concerns over growing competition in artificial intelligence. A notable development came when Chinese startup DeepSeek introduced a cost-efficient AI model, sparking fears of increased competition and driving a sell-off in AI-linked stocks.
Tech heavyweight Microsoft Corp. (MSFT) faced substantial losses, plummeting more than 6% on Thursday following a weaker-than-expected growth outlook for its cloud computing segment. The disappointing forecast added to broader concerns over the company’s ability to sustain momentum in one of its most lucrative businesses.
Despite the recent pullback, all three major stock indexes remain on course for monthly gains, with the S&P 500 sitting just under 1% away from its record high reached last week. Historical data shows that January has been a mixed month for equities, with the S&P 500’s average return remaining relatively flat since 2000.
Beyond equities, global markets remained on edge after U.S. President Donald Trump reaffirmed his position on trade tariffs. On Thursday, Trump reaffirmed plans to impose a 25% tariff on imports from Mexico and Canada, doubling down on earlier warnings and maintaining a firm stance ahead of a self-imposed Saturday deadline.
Among other notable premarket movers, Vertex Pharmaceuticals (VRTX) jumped 7.2% following regulatory approval of its non-opioid painkiller. The approval marks a significant milestone for the drugmaker, which has been working to develop alternative treatments amid the ongoing opioid crisis.
In contrast, Deckers Outdoor Corp. (DECK), the company behind UGG boots, tumbled 14.7% after its updated annual sales outlook fell short of lofty investor expectations. The company reported robust holiday sales but indicated that revenue growth could moderate in the coming months.
Meanwhile, Walgreens Boots Alliance (WBA) saw a steep 9.8% decline in premarket trading after announcing the suspension of its quarterly cash dividend. The decision comes as the pharmacy chain undergoes a significant restructuring effort aimed at streamlining operations and addressing financial challenges.
As investors digest corporate earnings and monitor inflation data, market sentiment remains cautiously optimistic. While economic uncertainty persists, particularly surrounding Federal Reserve policy and geopolitical developments, the resilience of corporate earnings has provided a measure of stability.
Looking ahead, traders will closely follow the release of the PCE price index for any surprises that could influence expectations for future interest rate decisions. Additionally, continued earnings reports from key players across various sectors will further shape market direction in the weeks ahead.