In the upcoming trading session, the Nasdaq is poised for a significant uptick, propelled by positive performances from Meta and Amazon in after-hours trading. The overall market sentiment might be influenced by the forthcoming US jobs report.
As the pre-market numbers indicate, Dow Jones Industrial Average futures gained 0.1%, S&P 500 futures rose 0.5%, and Nasdaq 100 futures contracts surged by 1.0%. Meta shares are particularly noteworthy, marking a 17% increase in pre-market trading. Meta’s announcement of its inaugural dividend, a substantial $50 billion buyback, and impressive sales figures have contributed to this surge. Additionally, Amazon, with a 7.2% rise, outperformed market expectations.
However, Apple faced a slight setback, witnessing a 2.4% decline in shares due to underwhelming Chinese sales impacting its results.
Looking ahead to the US market opening, analysts anticipate that the job figures will reveal a growth of 180,000 jobs in January, a slight dip from the 216,000 reported in December.
In other market movements, Chevron and Exxon Mobil experienced positive shifts post-earnings. Exxon reported a full-year net income of $36 billion, a decrease from the previous year but still its most substantial since 2012. Similarly, Chevron’s net income of $21.4 billion, while lower than the prior year, represents its strongest performance since 2013.
Shifting focus to the UK, Goldman Sachs and Bank of America offer insights into the Bank of England’s recent rate decision. Goldman Sachs views the decision as mixed, highlighting a more hawkish vote split than anticipated. The MPC’s adjustments to guidance have opened the door to potential rate cuts in upcoming meetings. Goldman predicts a rate cut in May, citing the easing of inflationary pressures in the data.
On the other hand, Bank of America sees the first rate cut occurring in August. Despite a slightly more hawkish vote split, the bank praises the communication from Bailey during the press conference, projecting a cautious approach by the UK central bank, expecting it to maintain the Bank Rate until August before initiating a gradual cutting cycle.
These developments underscore the dynamic nature of the global financial landscape, with markets reacting to corporate earnings, economic indicators, and central bank decisions. Investors are advised to stay vigilant and adaptable in response to emerging trends.
