US stock futures rise as tech rout pauses; major earnings awaited

Investing.com-- U.S. stock index futures rose slightly in evening deals on Thursday as a broad rotation out of heavyweight technology stocks appeared to have eased before a string of key earnings from the sector next week.

But sentiment still remained fragile following underwhelming earnings from Netflix Inc (NASDAQ:NFLX), while uncertainty over U.S. politics also weighed amid growing calls for President Joe Biden to withdraw his reelection bid.

S&P 500 Futuresrose 0.1% to 5,602.0 points, while Nasdaq 100 Futures rose 0.3% to 19,946.50 points by 19:47 ET (23:47 GMT). Dow Jones Futures rose slightly to 40,985.0 points. 

Tech stocks steady after bruising losses

Major technology stocks steadied in aftermarket trading, after clocking steep losses over the past two sessions. Majors such as Apple Inc (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) rose slightly in evening trade.

A mix of profit-taking and a rotation into sectors more primed to benefit from an economic recovery had battered major technology stocks over the past two sessions. 

Netflix fell slightly in aftermarket trade after its second quarter earnings missed expectations. 

Heavyweight chipmaking stocks were also rattled by the prospect of more U.S. sanctions on China, especially on the country’s chipmaking sector.

Losses in tech sparked deep losses on Wall Street, with the S&P 500 down 0.8% at 5,544.59 points on Thursday. The NASDAQ Composite fell 0.7% to 17,874.45 points, while the Dow Jones Industrial Average sank 1.3% to 17,874.45 points. 

Heavyweight tech earnings on tap, TSMC supports chipmakers 

Focus was now squarely on key upcoming earnings from the tech sector next week. Microsoft, Google owner Alphabet Inc (NASDAQ:GOOGL) and Tesla Inc (NASDAQ:TSLA)are all set to report on Tuesday, with the two internet giants set to offer more cues on artificial intelligence after a massive valuation spike over the past year. 

Tesla will be watched for how the electric car maker is navigating a steep decline in sales this year. 

Positive earnings from chipmaking bellwethers ASML (AS:ASML) Holding (NASDAQ:ASML) and TSMC (NYSE:TSM) aided chipmaking stocks on Thursday. TSMC rose slightly after it clocked stronger-than-expected second-quarter earnings, with the world’s biggest contract chipmaker also hiking its outlook on strong AI-fueled demand.

Political wrangling in focus as calls grow for Biden to exit race 

The 2024 presidential race was also a point of focus for Wall Street, amid growing calls from members of the Democratic party for Biden to not seek re-election.

Reports on Thursday said former House of Representatives speaker Nancy Pelosi had told House democrats that Biden could be persuaded to exit the race. 

Concerns over Biden’s health, coupled with the increasing popularity of Republican nominee Donald Trump, have sparked doubts over whether Biden will be able to clinch a second term.