Futures climb as Alphabet, Microsoft results lift megacaps

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Futures climb as Alphabet, Microsoft results lift megacaps
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Alphabet jumped 11.5% in premarket trading after the Google-parent announced its first-ever dividend, a $70 billion stock buyback and beat estimates for...

- U.S. stock index futures advanced on Friday as megacap growth shares rebounded on the back of robust quarterly results from Alphabet and Microsoft , while investors awaited a key inflation print that could help shape U.S. monetary policy.

Lifting sentiment further, Microsoft gained 4% on beating Wall Street estimates for third-quarter revenue and profit, driven by gains from AI adoption across its cloud services.Other growth stocks also rose on the results, with Amazon.com and Nvidia up 3.1% and 1.3%, respectively. Meta Platforms added 1.2%, recovering from a near 11% drop in the previous session, its steepest fall in 18 months.

The upbeat earnings in the week have propped up Wall Street's main stock indexes for weekly gains, with the benchmark S&P 500 looking to snap three weeks of losses while the Nasdaq is set to snap four straight weeks of losses. Money markets are pricing in just about 35 basis points of rate cuts from the central bank this year, down from nearly 150 bps seen at the beginning of the year, as per LSEG data.

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