Futures gain on Amazon, Intel boost; key inflation data awaited
(Reuters) — U.S. stock index futures climbed on Friday as robust forecasts from Amazon.com (NASDAQ:AMZN) and Intel (NASDAQ:INTC) along with a pullback in Treasury yields lifted megacaps, while investors awaited a key inflation data during the day.
Amazon.com gained 5.4% in premarket trading after saying growth in its cloud business is stabilizing on signing new deals. However, it warned that customers remained wary about spending heading into the holiday quarter.
Intel gained 7.9% after forecasting fourth-quarter revenue and margins above estimates as the chipmaker was optimistic about a rebound in personal computer sales, improved data center business and demand for manufacturing services.
Among other chip stocks, Advanced Micro Devices (NASDAQ:AMD) rose 2.1% and Nvidia (NASDAQ:NVDA) added 1.6%.
Megacap tech and tech-adjacent stocks including Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA) and Alphabet (NASDAQ:GOOGL) gained between 0.7% and 2.1% as U.S. Treasury yields dropped after Thursday's weaker-than-expected U.S. inflation and disposable income data.
Investor focus will be on personal consumption expenditure for September, the Federal Reserve's preferred inflation metric, at 8:30 a.m. ET for more clarity on the monetary policy outlook.
The U.S. Commerce Department's report is expected to show a 0.3% monthly rise in the headline and core figures, excluding volatile energy and food items, according to a Reuters poll. Annually, they are seen rising 3.4% and 3.7%, respectively.
Traders have fully priced in an interest rate hold in the Fed's policy decision on Nov. 1 and a 80% chance of the same in December, as per CME's FedWatch tool.
Meanwhile, bets of a 25-basis-point rate cut stood at
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