synopsis

The S&P 500 and the Nasdaq Composite ended Thursday at their highest levels since early April 2, suggesting a return to the levels before the tariff announcement.

U.S. stock futures were mixed in Asian trading hours on Friday after the market posted substantial gains for a third straight session on Thursday. Alphabet, Inc.'s (GOOGL) (GOOG) positive quarterly results have lifted the Nasdaq 100 futures even as the underlying mood is one of caution.

Earnings reports from Intel (INTC) and T-Mobile US (TMUS), however, have triggered negative reactions.

In the Asian session, the trend in the futures market was as follows:

  • S&P 500 futures: +0.35%
  • Nasdaq 100 futures: +0.48%
  • Dow futures: -0.08%
  • Russell 2000 futures: -0.10%

 

After retreating eight basis points on Thursday, the 10-year U.S. Treasury yield was up 1.2 basis points at 4.317% in Asian trading hours on Friday.

In the commodity market, gold futures were higher than the $3,350-an-ounce mark, and the WTI-grade crude oil futures extended Thursday's gains.

Trading direction for the day will also hinge on the University of Michigan's final consumer sentiment reading for April. The flash reading released mid-month was 50.8, marking the second lowest reading as President Donald Trump's tariff uncertainties bite.

Key earnings due ahead of the market include AbbVie (ABBV), insurer Aon (AON), Colgate-Palmolive (CP), telecom services company Charter Communications (CHTR), and AutoNation (AN). 

George Smith, Portfolio Strategist for LPL Financial, noted that the weekly sentiment survey released by the American Association of Individual Investors (AAII) Thursday showed a slight easing of bearish investor sentiment.

However, he said the spread between bullish and bearish sentiment remained negative for the 12th straight week.

According to the strategist, the persistence and levels of negative sentiment should indicate that investors should remain invested and not panic sell at the height of negativity. 

He opined that the present scenario could present an opportunity to increase risk, especially for investors with longer time horizons.

After starting Thursday's session cautiously as China refuted reports of beginning trade talks with China, the major averages launched into a rally, led by tech, consumer discretionary, and material stocks. The gains came despite mixed earnings news flow.

Of the 11 S&P 500 sector classes, only consumer staple stocks came under selling pressure.

The S&P 500 and the Nasdaq Composite ended at their highest level since early April 2, suggesting a return of the indices to the pre-tariff announcement levels.

Meanwhile, the Dow Jones Industrial Average reclaimed the 40,000 level; it ended at a one-week low.

The SPDR S&P 500 ETF (SPY) exchange-traded fund (ETF) ended Thursday's session up 2.10% at $546.69, and the Invesco QQQ Trust (QQQ) ETF jumped 2.81% at $400.98.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 1.28% to $395.91.

The iShares Russell 2,000 ETF (IWM) ended up 2% at $194.06.

For the year-to-date period, the SPY, QQQ, and DIA are down over 6.4%, 8.5%, and 5.4%, respectively. The IWM has fallen a steeper 12%.

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