Dow futures climb 275 points as Intel earnings, falling oil lift sentiment

U.S. stock futures rose Friday as Intel Corp.'s stronger-than-expected earnings and a retreat in oil prices from the $100-a-barrel level offered relief after a technology-led selloff pushed the Nasdaq to its worst day in seven weeks.

Dow Jones Industrial Average futures gained 275 points, or 0.5%, after Intel's earnings beat and a pullback in oil prices from $100 a barrel eased inflation concerns.

"Intel's results show the AI buildout is generating real revenue growth beyond the hyperscalers, which is helping stabilize tech sentiment after yesterday's selloff," said Adam Turnquist, chief technical strategist at LPL Financial.

S&P 500 futures added 0.3% and Nasdaq 100 contracts gained 0.1%. The moves follow Thursday's rout that sent the Dow down more than 500 points, or about 1%, while the S&P 500 fell 1.2% and the Nasdaq Composite dropped 2.2% — its worst session since June 23. Brent crude futures retreated 2.9% to $97.75 a barrel after topping $100 for the first time since May, while West Texas Intermediate fell 2.4% to about $90.

The stabilization comes as traders reassess the outlook for Federal Reserve policy, with the 10-year Treasury yield easing to below 4.69% after hitting its highest intraday level in 18 months Thursday. Markets now price a 29% chance of a rate hike at next week's Fed meeting, up from 13% a week ago.

Intel shares jumped 4% in premarket trading after the chipmaker reported adjusted earnings per share of 42 cents on revenue of $16.1 billion, well above the 22 cents and $14.43 billion analysts had expected. Chief Executive Officer Lip-Bu Tan said the company recorded its strongest revenue growth in more than 15 years, driven by demand for AI hardware.

The gains in Intel helped offset lingering weakness from Thursday's megacap selloff. Tesla shares edged up 1% in premarket after plunging nearly 15% on an earnings miss, while Alphabet ticked higher following a 7% decline. Nvidia shares edged lower in premarket trading.

European stocks opened broadly higher, with the Stoxx 600 adding 0.5%. Asian markets closed mostly lower, with South Korea's Kospi plunging 5.7% and Japan's Nikkei 225 sliding 2.7%. The dollar was flat against a basket of major currencies, while gold futures rose 0.4% to $4,065 an ounce.

This article is for informational purposes only and does not constitute investment advice.