FX.co ★ U.S. Stocks May Regain Ground Following Yesterday's Sell-Off

Stocks are poised for a rebound after Thursday's downturn, with early indicators suggesting an uptick at Friday's opening. Futures for the S&P 500 are showing a 0.5% rise.

The positive sentiment is fueled by strong earnings reports from notable companies such as Amazon and Intel. Pre-market activity sees Amazon shares up by 6.9% following third-quarter results surpassing analyst expectations. Intel shares are similarly gaining, rising 7.4% pre-market due to stronger-than-anticipated earnings and robust forward guidance.

Exxon Mobil is also set for an upward move after exceeding earnings expectations for the third quarter. Conversely, Apple is facing some pre-market pressure despite reporting better-than-expected results for the fiscal fourth quarter.

Investor confidence remains buoyed despite a Labor Department report indicating weaker-than-expected job growth for October. Non-farm payrolls rose by just 12,000 jobs, a significant drop from September’s revised figure of 223,000 and below the forecasted 113,000. However, the unemployment rate held steady at 4.1%, aligning with predictions.

This labor market data might temper concerns about economic strength but simultaneously renew hopes regarding future interest rate trends.

At the market's opening, attention will turn to the Institute for Supply Management's forthcoming release on October manufacturing activity. Projections suggest a slight rise in the PMI to 47.6 from September’s 47.2, though a sub-50 reading continues to signal contraction. The Commerce Department will also release September's construction spending data, expected to remain stable after a 0.1% decline in August.

Thursday witnessed a substantive decline in stocks, predominantly driven by a tech stock sell-off which severely impacted the Nasdaq. The major indices closed near their lows for the day, with the Nasdaq plummeting 2.8%, the S&P 500 dropping 1.9%, and the Dow declining 0.9%.

In global markets, Asia-Pacific exchanges recorded mostly negative outcomes on Friday, highlighted by Japan’s Nikkei 225 falling 2.6% and China's Shanghai Composite down 0.2%, although Hong Kong's Hang Seng managed a 0.9% gain. European markets are experiencing upward momentum, with the UK's FTSE 100, France’s CAC 40, and Germany’s DAX Index posting increases of 0.8%, 0.7%, and 0.6% respectively.

Turning to commodities, crude oil futures are surging by $1.67, reaching $70.93 a barrel, building on a $0.65 increase from the previous day. Gold futures are recovering by $16.90 to $2,766.20 an ounce after a significant drop of $51.50 previously.

In currency trading, the U.S. dollar remains relatively stable against the yen at 151.97, slightly down from 152.03 from Thursday's close. Against the euro, the dollar stands at $1.0898, up from $1.0884.