U.S. stock index futures were higher on Monday, after a roller-coaster week, as investors focused on the third-quarter earnings season to assess the impact of decades-high inflation and rising interest rates on corporate profit.
Major megacap growth stocks like Apple Inc (AAPL.O), Meta Platforms Inc (META.O), Amazon.com (AMZN.O), and Tesla Inc (TSLA.O) added over 1% each as the yield on U.S. 10-year bonds dipped from Friday's levels.
Major U.S. banks JPMorgan Chase & Co (JPM.N), Morgan Stanley (MS.N), Citigroup Inc (C.N) and Wells Fargo & Co (WFC.N) reported a slide in net income on Friday after turbulent markets choked off investment banking activity and lenders set aside more funds to cover losses from borrowers who fall behind on payments.
Investors will closely monitor the earnings of Bank of America Corp and Bank of New York Mellon Corp (BK.N) due later in the day. Tesla Inc (TSLA.O), Netflix (NFLX.O) and Johnson & Johnson (JNJ.N) are also expected to report their results later in the week.
At 04:56 a.m. ET, Dow e-minis were up 231 points, or 0.78%, S&P 500 e-minis were up 33.5 points, or 0.93%, and Nasdaq 100 e-minis were up 120.75 points, or 1.12%.
Goldman Sachs (GS.N) edged higher in premarket trading following reports of a likely major reorganization under which its investment banking and trading businesses will be combined, while consumer banking will be absorbed by its wealth unit. The S&P 500 (.SPX) and Nasdaq Composite (.IXIC) marked their fourth weekly loss in five on Friday, after data showed little signs that inflation was cooling, prompting traders to start pricing in the possibility of a full percentage point hike from the Federal Reserve at its November rate-setting meeting.
Volatility also stemmed from UK's political turmoil, following the ousting of Finance Minister Kwasi Kwarteng. Investors now await another test for gilts from a new tax proposal due later in the day from Kwarteng's successor Jeremy Hunt.
