Stock market today: Dow, S&P 500 and Nasdaq futures rise as oil prices fall and tech recovers

U.S. stock futures rose slightly on Friday as oil prices fell and technology stocks rebounded.

Dow Jones Industrial Average Futures (YM=F) rose slightly by 0.1%, while those of the S&P 500 (ES=F) increased by 0.4%. Contracts for the Nasdaq-100 (NQ=F) gained 0.8% after shares lost ground on Thursday.

Delta Air Lines (DAL) announced its third quarter results. Airline shares fell 3% Friday morning after its third-quarter results missed the target as rising fuel prices offset strength in its premium business. Delta’s report also sets the stage for the unofficial start of earnings season next Tuesday, when major Wall Street banks report results.

Tech stocks rallied after an AI scare on Thursday, when the Financial Times reported that OpenAI’s annualized revenue reached $50 billion, $20 billion less than estimates. Bloomberg later reported that OpenAI hoped to reach or exceed $70 billion in annualized revenue by the end of the year, helping to ease concerns that the AI boom is losing steam.

Falling oil prices also boosted stocks, with Brent crude futures (BZ=F), the international benchmark, falling to $103 a barrel.

We’ll see just how volatile the oil markets felt to consumers this month when the results of the University of Michigan’s latest Consumer Confidence Survey are released, providing a measure of consumer confidence.

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History Says Midterm Elections Could Give the S&P 500 a Year-End Rally
Stocks may be nearing record highs, but history suggests the midterm elections could pave the way for the S&P 500 (^GSPC) to rebound through the end of the year.
Jim Reid of Deutsche Bank pointed out that “we have now entered a historically much stronger seasonal period, which is worth keeping in mind as nervousness remains high in the markets.”
The firm’s research shows that the S&P 500 index has risen in 21 of the last 23 midterm election cycles, from one month before the election to two months after.
“With the midterms less than a month away, we entered that sweet spot this week,” the strategist wrote.
Source: Bloomberg Finance LP, Deutsche Bank Asset Allocation
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Apple is the ‘toll on the consumer AI highway,’ says Dan Ives
Yahoo Finance’s Ethan Wolff-Mann writes in today’s Morning Brief newsletter:
Apple (AAPL) has repeatedly positioned itself between the consumer and what they want, with great success.
The iTunes store. The App Store. As Michael Gambon said in “Layer Cake” — a quote I’ve written about before and will say again and again: “The art of good business is being a good middleman,” and Apple understands that as well as anyone.
But Apple’s ability to implement this strategy is due to its access to this sweet spot: controlling and supplying the world’s most popular devices, like the iPhone and iPad, makes it possible.
Dan Ives of Yorkville Ives said that sums up his optimistic case for the hardware king, the sometimes most valuable company, still flying high without being directly involved in cutting-edge AI.
“In our view, Apple will be the toll on the highway to consumer AI,” Ives wrote in a note to clients Thursday. “While Apple has struggled in recent years with its AI strategy and experienced many twists and turns, Ternus and Cupertino finally have a horse in the race with a vision for AI that will become a formidable part of Apple’s strategy in the years to come.”
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Good morning. Here’s what’s happening today.
Economic data: US sentiment, October preliminary reading (48 expected, 48.1 previously); University of Michigan Current Conditions, October Preliminary Reading (50.9 Forward); University of Michigan Current Expectations, October Preliminary Reading (46.3 Forward); Year-on-year inflation in the United States, preliminary reading for October (+4.6% previously); US inflation over 5 to 10 years, preliminary reading for October (+3.4% previously)
Earnings schedule: Delta Air Lines (DAL)
Check out some of the biggest news stories of the night:
SpaceX’s phone game sees AT&T, T-Mobile and Verizon crushed after hours
Oil falls after Trump says no attack on Iran before midterms
OpenAI forecasts $70 billion in annualized revenue by the end of 2026
American Express fined $350 million for facilitating money laundering
Fired OpenAI security researchers claim they were kicked out due to ‘suspicious’ circumstances
Tech stocks struggle on concerns about AI spending and high returns
Reuters reports:
Asian stocks fell on Friday and were poised for a second straight weekly decline as investors fretted over rising energy prices, bond market ructions and the huge sums needed to fund AI investments.
Brent crude futures were at $103.70 a barrel during Asian hours after jumping more than 4% in the previous session on concerns over the war in the Middle East which “stoked inflationary concerns and led to higher rates around the world.”
President Donald Trump said Thursday the United States would not launch an attack on Iran before the U.S. midterm elections in November, even as traders remained skeptical about progress in ending the war.
“The big question for markets is whether Trump will keep his word if the Iranian attacks escalate,” said Nick Twidale, chief market strategist at ATFX Global.
“Any sign that the White House is reconsidering military action could lead to a sharp rise in oil prices, particularly with tanker traffic crossing the Strait of Hormuz already under significant pressure.”
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