Futures bounce after selloff as Tesla jumps 11%

(Reuters) – Futures tracking the and the rose on Thursday as an upbeat forecast from Tesla (NASDAQ:) kicked off megacap earnings on a positive note, following declines in major indexes in the previous session.

Shares of the electric vehicle maker soared nearly 11% in premarket trading after it reported robust third-quarter profits and surprised investors with a prediction of 20-30% growth in sales next year.

Tesla was the first of the so-called Magnificent Seven group of megacap stocks to report, with results from several of the cohort awaited next week.

The other six also rose, with Nvidia (NASDAQ:) jumping 1.3%, Amazon.com (NASDAQ:) up 0.6% and Meta Platforms (NASDAQ:) gaining 0.9% after steep declines in the prior session.

At 4:55 a.m. ET, Dow E-minis were down 39 points, or 0.09%, U.S. S&P 500 E-minis were up 21.25 points, or 0.36% and Nasdaq 100 E-minis were up 135.75 points, or 0.67%.

Wall Street had sold off on Wednesday, with the benchmark S&P 500 notching its third straight decline and the Nasdaq seeing its worst day since early September.

Stocks have eased from record levels over the past few sessions due to a reassessment of bets on the Federal Reserve’s rate cuts, rising Treasury yields, corporate earnings and uncertainty over the upcoming U.S. elections.

“Price action speaks to a market that was overly rich and well-owned, and as the cracks started to emerge the signal was there for others to follow,” said Chris Weston, head of research at Pepperstone.

Moves were likely exacerbated as traders moved to hedge their losses, Weston added.

The yield on the benchmark 10-year Treasury eased slightly on the day, but was still trading around its highest since late July.

Shares of Boeing (NYSE:) dropped 3% after factory workers voted on Wednesday to reject a contract offer and continue a more than five-week strike that has seen the company’s losses soar.

International Business Machines (NYSE:) lost 4.3% after missing estimates for third-quarter revenue, while gold producer Newmont dropped 5.4% as higher costs and weaker Nevada output saw it miss profit estimates.

The third-quarter earnings season continues apace, with United Parcel Service (NYSE:), Southwest Airlines (NYSE:) and Keurig Dr Pepper (NASDAQ:) among those reporting before the bell.

S&P Global flash PMIs and weekly jobless claims data are due on the day, while the Cleveland Fed’s Beth Hammack is scheduled to speak.