E-mini S&P and NQ Press Higher as Tech Earnings Shine, Fed Tone Tempers Enthusiasm

E-mini S&P (December) / E-mini NQ (December)

S&P, last week’s close: Settled at 6874.00, up 18.50 on Friday and 47.00 on the week

NQ, last week’s close: Settled at 26,004.00, up 121.25 on Friday and 494.75 on the week

E-mini S&P and E-mini NQ futures struggled as Friday’s session unfolded due to a coordinated hawkish rhetoric among Fed members. Notably, Kansas City Fed President Schmid, who dissented in favor of no cut last week, said on Friday that he is more concerned about inflation being too high than about job market weakness. Dallas Fed President Logan, who votes next year, said she would have dissented as well.

That said, AMZN held onto a gain of 9.6% after a blowout earnings report, setting its first record high since February. However, AAPL surrendered premarket gains to finish -0.4% after a strong report, struggling intraday alongside META, AVGO, and MSFT. November typically marks the beginning of a strong stretch through the first quarter for equity markets. Earnings have overall been strong so far, with Tech’s leadership being highlighted by +26.5% y/y growth versus +20.9% expected, according to FactSet. With last week’s Fed meeting in the rearview mirror, we expect the strength in indices to continue. Still, given the hawkish rhetoric and recalibration of expectations for a cut in December, there could be a dip to rare major four-star support in the E-mini S&P that covers the prior Friday’s gap at…