(Bloomberg) — U.S. equity futures rose Friday after strong Apple Inc. earnings aided sentiment, while Asian stocks looked set to recover some of the losses sparked by the Federal Reserve’s pivot to tighter monetary policy.
Contracts on the tech-heavy Nasdaq 100 were up about 1%. Apple Inc. rallied in extended trading on record sales that signaled it weathered supply-chain snarls. Australian shares rose, as did futures for Japan and Hong Kong.
U.S. shares Thursday ended lower in another volatile Wall Street session that saw the dollar jump. The S&P 500 and Nasdaq 100 again failed to hold intraday rallies, while a gauge of U.S. small-caps slumped into a bear market.
Treasuries were mixed, with the 10-year yield dropping to 1.80% and the yield curve flatter. A dollar gauge pushed higher, in part after solid U.S. growth data reinforced expectations for Fed tightening to fight inflation. Oil advanced and gold held a retreat.
Money markets are now pricing in nearly five Fed hikes this year following Chair Jerome Powell’s hawkish tone Wednesday. That’s up from three expected as recently as December. The prospect of receding Fed stimulus is whipsawing markets: global stocks, for instance, have lost over $7 trillion this month.
“Really what we are seeing is historic intraday volatility,” Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, said on Bloomberg Television. “It’s been a pretty amazing ride so far this year.”
The latest U.S. figures showed gross domestic product expanded at a 6.9% annualized rate in the fourth quarter, capping the strongest year since the 1980s.
What to watch this week:
- Euro zone economic confidence, consumer confidence Friday.
- U.S. consumer income, University of Michigan consumer sentiment Friday.
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.6% as of 8:20 a.m. in Tokyo. The S&P 500 fell 0.5%
- Nasdaq 100 futures jumped 1%. The Nasdaq 100 fell 1.2%
- Nikkei 225 futures rose 1.3%
- Australia’s S&P/ASX 200 index rose 1%
- Hang Seng futures rose 0.1% earlier
Currencies
- The Bloomberg Dollar Spot Index rose 0.7%
- The euro was at $1.1145
- The Japanese yen was at 115.31 per dollar
- The offshore yuan was at 6.3693 per dollar
Bonds
- The yield on 10-year Treasuries declined six basis points to 1.80%
- The yield on Australia’s 10-year bond fell six basis points to 1.96%
Commodities
- West Texas Intermediate crude climbed 1% to $87.46 a barrel
- Gold was at $1,797.76 an ounce
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