Stock Market Live: Tech Leads Gains On Google Job Cuts Boost As Stocks Maintain Focus On Fed


Stock Market Live: Tech Leads Gains On Google Job Cuts Boost As Stocks Maintain Focus On Fed

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Stock Market Live: Tech Leads Gains On Google Job Cuts Boost As Stocks Maintain Focus On Fed
Stock Market Live: Tech Leads Gains On Google Job Cuts Boost As Stocks Maintain Focus On Fed

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Stocks are poised to extend a three-day losing streak as Google gets another batch of job cuts and Treasury performance amid dovish comments from the Federal Reserve.

US stock futures rose on Friday after three consecutive sessions of declines as investors continued to monitor comments from Federal Reserve officials as they braced for big tech gains next week.

Indeed , big tech hit the headlines again on Friday after media and advertising giant Google GOOLG announced plans to cut 12,000 jobs from its global workforce following similar moves by Microsoft ( MSFT ) to increase the workforce in the industry: Get Free Report , Amazon ( AMZN )) – Get a free report, Metaplatforms ( META ) – Get a free report and Salesforce ( CRM ) – Get a free report .

However, overall market sentiment remains tied to the central bank's interest rate outlook, Federal Reserve Vice Chairman Lyle Brainard said at an event in Chicago Thursday night, adding that the central bank is still "tightening" interest rates to an appropriate level to control inflation. . It keeps the economy out of recession.

But he added that borrowing costs would remain high "for some time", although he favored smaller increases in the future.

This view was echoed by Susan Collins, President of the Boston Federal Reserve, in a speech last night in which he indicated that the federal funds rate will return to above 5% in the spring and several months later. The market expects an interest rate increase of 4.75%, and the probability of an interest rate cut at the end of the year remains unchanged.

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With the Fed's next policy meeting on January 31 looming, the FedWatch report by CME Group shows a 94.3 percent chance that the Fed will raise interest rates by 25 basis points, up from 76.7 percent last week.

Benchmark 10-year Treasury yields were slightly higher in overnight trade, last seen changing at 3429, even after some dovish comments from a senior European Central Bank official on rate hikes. Meanwhile, the two-year note closed 4.162% higher and the US dollar index was trading at 102.187, up 0.13% against its global peers.

Big technology breakthroughs in next week's window, including Microsoft and IBM ( IBM ) – Get a free report , Intel ( INTC ) – Get a free report , as well as Boeing ( BA ) – Get a free report and Tesla ( TSLA ) updates. – Get the free report General Electric and GE investors expect a quiet opening Friday, though last night the Nasdaq got an expected fourth-quarter earnings boost from Netflix ( NFLX ) – Get the free report .

“With technology earnings season continuing into the fourth quarter, with the Netflix earnings fireworks last night, the battery now kicks off a big two weeks, with strong tech companies announcing earnings and, most importantly, guidance for 2023,” said Wedbush analyst Dan. Ives.

The key issue is expected to be layoffs in tech as Silicon Valley agrees on how to cut costs to weather this economic storm after a decade of hyper-growth, with Alphabet (for now) announcing layoffs this morning, most recently Cinderella. Your journey ends."

As the trading day approaches on Wall Street, futures linked to the S&P 500 index are up 14 points from the opening bell, while those linked to the Dow Jones Industrial Average are up 30 points. The technology-focused Nasdaq rose 88 points.

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Much of that gain was driven by Google's 3.7% gain. The tech and media giant, which announced plans to cut about 12,000 jobs, is following rivals in downsizing amid growing economic uncertainty.

Shares of Netflix also rose significantly, rising 6.7% after the broadcast television group posted better-than-expected earnings from subscribers that offset a significant profit loss and the departure of founder and CEO Reed Hastings.

Eli Lilly ( LLY ) — Get Free Report Shares fell 2.27% after the US Food and Drug Administration (FDA) ordered a review of the drug's accelerated treatment for Alzheimer's disease.

Nordstrom ( JWN ) — Meanwhile, Get the Free Report fell 6.88% after the retailer cut its full-year earnings forecast after updating holiday sales that came in weaker than expected.

In overseas markets, the MSCI Japan regional index ended the day up 0.8% ahead of the looming Lunar New Year holidays, which will keep major markets in the region closed for most of the week. Tokyo's Nikkei 225 rose 0.56% after key data last month and core inflation hit 4%, the fastest in 41 years.

The European Stoxx 600 was up 0.35% midday in Frankfurt, and the FTSE 100 in London was up 0.23%.

Why millennials are leaving six-figure tech jobs

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