U.S. stock futures edged higher Friday, signaling a potential rebound to close out October, as upbeat results from Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) lifted investor mood. Meanwhile, Nvidia (NASDAQ:NVDA) announced a new supply deal in South Korea, and fresh data showed that China’s manufacturing sector contracted more than expected.

Futures edge higher

By 02:20 ET, S&P 500 futures rose 0.6% (up 42 points), Nasdaq 100 futures gained 1.1% (up 290 points), and Dow futures were little changed. Investors weighed new tech earnings alongside signs of easing trade tensions as the month drew to a close.

The previous session saw declines across major U.S. indices, dragged lower by Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT). Both companies revealed plans to significantly boost spending on artificial intelligence, sparking concerns over compressed profit margins and uncertain returns. Meta shares dropped 11.3%—their steepest one-day fall in three years—while Microsoft slipped 2.9%. Alphabet (NASDAQ:GOOG), however, rose 2.5% after surpassing forecasts on the back of strong advertising and cloud revenue.

Federal Reserve Chair Jerome Powell tempered hopes of further policy easing, saying another rate cut in December was “far from a foregone conclusion.” Meanwhile, trade deals between U.S. President Donald Trump and Chinese President Xi Jinping failed to shift sentiment materially. Nvidia, which this week became the first company to surpass a $5 trillion market valuation, retreated 2%.

Amazon surges on strong cloud and AI-driven results

Amazon reported third-quarter revenue of $180.2 billion, up 13% year-over-year and above expectations of $177.75 billion. Earnings per share came in at $1.95, topping estimates of $1.56 despite a one-off legal settlement and workforce reduction costs.

Growth at Amazon Web Services—central to the company’s AI ambitions—accelerated to 20%, its fastest pace since 2022. For the holiday quarter, Amazon projects sales between $206 billion and $213 billion, implying growth of 10%–13%, and operating income in the range of $21 billion to $26 billion.

The company said it spent nearly $90 billion in capital expenditures during the first nine months of the year, with full-year investment expected to reach $125 billion, as it expands its AI infrastructure.

Apple forecasts record holiday quarter

Apple shares also traded higher premarket after the company delivered an upbeat forecast for the final quarter of 2025. The tech giant expects revenue to climb 10%–12% during the holiday season—well above analyst projections.

CEO Tim Cook told CNBC the iPhone 17 would drive the best December quarter “in the history of the company.” Demand for the latest model has outpaced that of its predecessors, particularly in the U.S. and China.

Apple posted fiscal Q4 earnings of $1.85 per share on revenue of $102.5 billion, compared with expectations of $1.76 per share and $102 billion in sales. While iPhone revenue of $49 billion came in slightly below forecasts due to supply constraints, CFO Kevan Parekh highlighted that investments in artificial intelligence are set to increase, adding around $1.5 billion to expected December-quarter operating expenses.

Nvidia strikes major AI chip deal in South Korea

Nvidia announced plans to supply over 260,000 advanced AI chips to South Korea’s government and major conglomerates, including Samsung Electronics, SK Group, and Hyundai Motor. Each company plans to deploy up to 50,000 chips in smart factory operations, while the government will use its allocation to bolster domestic AI development.

“Just as Korea’s physical factories have inspired the world with sophisticated ships, cars, chips and electronics, the nation can now produce intelligence as a new export that will drive global transformation,” Nvidia CEO Jensen Huang said in a statement.

Huang, who met with President Lee Jae Myung and corporate leaders in Gyeongju, did not disclose the deal’s value or timeline. The announcement further cements Nvidia’s dominance amid the global AI boom.

China’s manufacturing slowdown deepens

Official data showed China’s manufacturing PMI fell to 49.0 in October, below expectations of 49.6 and down from 49.8 in September, signaling a sharper contraction. The sector has now remained below the 50-point threshold for seven consecutive months.

The report indicated that weak domestic demand and persistent U.S. trade tariffs continue to weigh on factory sentiment. Analysts said the figures underscore growing pressure on Beijing to introduce additional stimulus measures as the world’s second-largest economy battles deflation, sluggish consumer spending, and soft private investment.

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