Stock Futures Edge Higher as Market Prepares for Pivotal Week with Apple Earnings and Elections

Stock futures ticked upward on Sunday evening, setting the stage for a highly anticipated week on Wall Street. Investors are bracing for a busy schedule featuring crucial midterm elections, major corporate earnings from tech giant Apple, and oil prices hovering around the century mark.

S&P 500 futures (ES=F), Nasdaq 100 futures (NQ=F), and Dow futures (YM=F) all opened with modest gains, climbing between 0.2% and 0.4% in early Sunday trading.

The market wrap-up for October revealed a stark divergence. While the largest artificial intelligence and semiconductor stocks suffered a staggering collective loss of approximately $5 trillion in market value since early October, the remaining 625 major U.S. companies managed to gain a robust $1.3 trillion, according to financial analysis.

This trend was further emphasized last week. Although the S&P 500 (^GSPC) dipped by about 0.6%, nine out of its eleven sectors posted gains of 1% or more. Historical data indicates that no other down week for the index since at least 1999 has shown such widespread strength, with seven or more sectors advancing during a declining week.

Looking ahead, market analysts are divided on what lies next. Some historical precedents suggest that the technology sector’s downturn could deepen before finding a bottom. Conversely, others point to seasonal strength, noting that the S&P 500 has consistently risen from the end of an October midterm election through the subsequent June since 1950. Both scenarios could hold merit, as recent market action demonstrates that broader market resilience can coexist with a tech sector correction.

What’s next

Apple. Apple (AAPL) is set to release its quarterly earnings after the market closes on Monday, with investor attention focused on the performance of iPhone 18 sales. As the world’s most valuable company, valued at approximately $5.03 trillion at the close of the previous week, Apple is currently the only member of the “Magnificent Seven” cohort outperforming the broader S&P 500 this year, with a gain of 27% compared to the index’s 11%. Nvidia (NVDA) stands close behind at around $4.93 trillion. Additionally, Palantir (PLTR) is also scheduled to report its results on Monday.

Oil. In the energy sector, West Texas Intermediate crude (CL=F) opened slightly lower on Sunday following a Friday close above $104 per barrel, marking its highest settlement since mid-September. Supply concerns persist as the Strait of Hormuz remains effectively closed during the ninth month of the Iran conflict, while the OPEC+ alliance decided to maintain its December production quotas unchanged.

The midterms and jobs. On the macroeconomic front, voters will head to the polls on Tuesday for the midterm elections, followed by the release of the October jobs report on Friday. Wall Street analysts are actively debating whether the Federal Reserve’s policy pivot remains intact in light of recent economic indicators.

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