As the US equity markets prepared for opening on Friday, signs indicated a downward trend as investors reflected on the recent interest rate cut by the Federal Reserve and assessed the implications of Donald Trump's recent electoral success on financial market dynamics. The Standard & Poor's 500 index recorded a dip of 0.2%, while the Nasdaq fell by approximately 0.3%.
The Dow Jones Industrial Average also showed slight declines during the premarket session. Meanwhile, Asian stock exchanges displayed mixed to lower performance, and European markets were trending downward by midday. On Thursday, the Federal Reserve's monetary policy committee implemented a reduction of 25 basis points to its benchmark lending rate, continuing the trend set by a previous 50-basis-point cut in September.
In premarket activity, shares of Upstart Holdings experienced a notable rise of about 22%, driven by the disclosure of the lending platform’s positive third-quarter results. Conversely, Airbnb saw a decline of roughly 5.5% as its third-quarter earnings failed to meet market projections. Arista Networks faced a drop of 4.6% despite surpassing expected results for the same period.
Similarly, Monster Beverage reported a 6% decrease in share price due to disappointing third-quarter results relative to Wall Street's expectations. Super Micro Computer’s shares gained 3.2%, while Trump Media & Technology Group continued its downward trend, falling 4.3% before the opening bell. Several companies, including NRG Energy, Baxter International, Paramount Global, Brookfield Renewable, and Flowers Foods, are set to unveil their latest quarterly results prior to market opening.
Additionally, Hawaiian Electric Industries is scheduled to release its financial report after the close of the markets. Telus recorded a premarket increase of 2.2% following the announcement of its third-quarter earnings. In the context of economic updates, the University of Michigan's preliminary consumer sentiment index for November will be released at 10:00 am ET, and the Baker Hughes weekly count of domestic oil and gas rigs will be available at 1:00 pm.
Furthermore, Fed Governor Michelle Bowman is expected to give remarks at 11 am, trailed by St. Louis Fed President Alberto Musalem at 2:30 pm. Before the market's opening, Bitcoin experienced a dip of approximately 0.7%, settling at $76,106. The price of West Texas Intermediate crude oil decreased by 1.2%, landing at $71.53 per barrel.
In bond markets, yields on 10-year Treasuries fell by 3.3 basis points to 4.31%, while gold prices dropped 0.2%, settling at $2,700 per ounce..