US stock futures rise as tech rebounds; Tesla surges on cheap EV plans

Investing.com-- U.S. stock index futures rose in evening trade on Tuesday, extending gains from Wall Street as technology shares rebounded in anticipation of key earnings reports due in the coming days. 

Tesla Inc (NASDAQ:TSLA) was among the best performers in aftermarket trade after its plans to launch new models- specifically affordable electric vehicles by 2025- largely overshadowed dismal first-quarter earnings. 

S&P 500 Futures rose 0.15% to 5,114.0 points, while Nasdaq 100 Futures rose 0.4% to 17,674.75 points by 19:09 ET (23:09 GMT). Dow Jones Futures steadied at 38,736.0 points. 

Wall St buoyed by tech rebound as heavyweight earnings loom 

Wall Street indexes closed higher for two consecutive sessions, as a recent rout in technology stocks gave way to bargain buying. The sector, along with broader benchmark indexes, was still nursing steep losses over the past two weeks. 

Tech also attracted some bargain buying ahead of earnings from some of the biggest companies on Wall Street, due this week. Facebook owner Meta Platforms Inc (NASDAQ:META) will report earnings on Wednesday, followed by tech giants Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOGL) on Thursday. 

Markets will be watching to see whether the tech majors can justify a massive run-up in their valuations over the first quarter. Optimism over any positive earnings is also likely to lift the broader tech sector. 

The S&P 500 closed up 1.2% at 5,070.55 points on Tuesday. The NASDAQ Composite rose 1.6% to 15,696.64 points, while the Dow Jones Industrial Average rose 0.7% to 38,503.69 points.

Tesla surges 12% on cheap EV plans 

Electric carmaker Tesla Inc jumped 12.4% in aftermarket trade to a nine-day high of $162.55, rebounding from a 15-month low hit earlier this week. 

Tesla said it was accelerating the launch of new EV models- which would also include more affordable options- to the second half of 2025. Analysts believe that a cheap EV model could represent the next leg of growth for Tesla, and also enable more sales of its high-margin self-driving software. 

The announcement largely overshadowed weaker-than-expected first-quarter earnings from the EV maker, as well as doubts over its plans to pivot heavily into robotaxis and full self driving- which CEO Elon Musk had touted recently. 

Q1 earnings season picks up pace

Beyond the tech majors, other earnings reports are also due on Wednesday. 

International Business Machines (NYSE:IBM) and Qualcomm Incorporated (NASDAQ:QCOM) will add to the pool of tech earnings, while reports from Boeing Co (NYSE:BA), AT&T Inc (NYSE:T), General Dynamics Corporation (NYSE:GD) and CME Group Inc (NASDAQ:CME) are also on tap.

So far, the first-quarter earnings season has been largely positive. Analysts at Oppenheimer noted that of the 14% of S&P 500 companies that have reported so far, 80% have beaten expectations and clocked earnings growth.

Texas Instruments, Visa advance on strong earnings

Among notable after-market movers, Texas Instruments Incorporated (NASDAQ:TXN) rose 7.4% on positive earnings. Visa Inc (NYSE:V) added over 3% as its first-quarter earnings beat expectations.

Uber Technologies Inc (NYSE:UBER) and LYFT Inc (NASDAQ:LYFT) sank 1.3% and 2.2%, respectively, after Tesla said it also planned to foray into ride-hailing.

Enphase Energy Inc (NASDAQ:ENPH) fell 6% on weaker-than-expected earnings.