Technology stocks pushed U.S. stock futures to rise before a highly successful week in earnings, with investors awaiting the results of companies like Apple, Tesla and Facebook.
Futures contracts linked to the S&P 500 rose 0.2%, pointing to an extension of earnings that saw the index close almost 2% up and reach a record on Friday. Nasdaq-100 futures advanced 1%, suggesting a rebound in technology stocks after the opening bell.
China’s most valuable internet company, Tencent Holdings, jumped nearly 11% to a record high in Hong Kong trade. Kuaishou Technology, a portfolio company of Tencent, a video recording application similar to TikTok, announced an initial public offering that could value it at around $ 60 billion. The Amsterdam-listed shares of technology investment group Prosus, one of Tencent’s largest shareholders, rose 5.5%.
More than a fifth of the broad S&P 500 index and a third of the components of the Dow Jones Industrial Average are expected to report earnings this week. Starbucks, Verizon and Microsoft are scheduled for Tuesday. Other major tech companies are reporting later in the week, including Apple, Tesla and Facebook on Wednesday.
“The way in which management communicates its prospects will be critical to the markets,” said Sophie Chardon, cross-asset strategist at Lombard Odier. “Investors will have to weigh the possibility of vaccination with the reality of the new blocks” and the impact on each company.