U.S. stock futures presented a mixed picture in early after-hours trading on Friday, with Nasdaq 100 futures climbing 0.68% and S&P 500 futures edging up 0.06%, while Dow futures slipped 0.48%. This activity comes after the S&P 500 and Nasdaq Composite closed at record highs, marking a strong start to May.
The S&P 500 finished the regular session at 7,230.12, gaining 0.3%, while the Nasdaq advanced 0.9% to 25,114.44, crossing the 25,000 threshold for the first time. The Dow Jones Industrial Average, however, lagged, slipping 152.87 points to close at 49,499.27.
The rally has been underpinned by robust corporate earnings. According to LSEG data, S&P 500 first-quarter profit growth stands at 27.8% year-over-year, the largest increase since Q4 2021. Ryan Detrick, chief market strategist at Carson Group, described the earnings season as "stronger than expected."
Technology stocks were standout performers. Apple (AAPL) jumped 3.3% after issuing a bullish sales forecast and citing strong demand for its iPhone 17 and MacBook Neo. Atlassian (TEAM) soared 29.6% on an upgraded annual outlook, while Salesforce (CRM) and ServiceNow (NOW) added 4.1% and 3.2%, respectively.
In contrast, Roblox (RBLX) tumbled 18.3% after cutting its annual bookings outlook. Reddit (RDDT) surged 13.1% on a stronger-than-expected revenue projection for the coming quarter.
After-hours trading saw notable moves in eBay (EBAY) and GameStop (GME). The Wall Street Journal reported that GameStop is preparing an offer for eBay, sending eBay shares up roughly 14% and GameStop up 4% in extended trading. Both companies declined to comment on the report.
Investors remain focused on macroeconomic signals, including oil prices and inflation data. The Institute for Supply Management’s prices-paid index rose to a four-year high in April, while oil prices continue to weigh on the outlook. Angelo Kourkafas, senior global investment strategist at Edward Jones, noted that investors are caught between "fast-rising profits" and "upward pressures on oil prices and bond yields."
Looking ahead, next week brings key employment figures and earnings reports from AMD (AMD), Palantir (PLTR), and Disney (DIS). A strong jobs report could bolster confidence in the economy but may also complicate expectations for Federal Reserve policy easing, particularly if inflation remains persistent.
