Tech stocks drove US stock futures higher ahead of a successful week in earnings, with investors awaiting results from companies like Apple, Tesla and Facebook.
Futures related to the S&P 500 rose 0.2%, indicating an extension of gains that saw the index close nearly 2% higher and hit a record high on Friday. Futures linked to the Nasdaq-100 rose 1%, suggesting a rally in tech stocks after the opening bell.
China’s most valuable internet company, Tencent Holdings, jumped nearly 11% to a record high in Hong Kong trading. Tencent’s portfolio company Kuaishou Technology, a TikTok-like video recording app, has announced an initial public offering that could value it at around $ 60 billion. Amsterdam-listed shares of tech 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 constituents of the Dow Jones Industrial Average are expected to release results this week. Starbucks, Verizon and Microsoft are scheduled for Tuesday. Other big tech companies will report later this week, including Apple, Tesla and Facebook on Wednesday.
“How management communicates its outlook will be critical for the markets,” said Sophie Chardon, multi-asset strategist at Lombard Odier. “Investors will have to weigh the possibility of vaccinations against the reality of the new lockdowns” and the impact on each business.