According to The Kobeissi Letter, S&P 500 futures rallied by 75 points between 3:30 PM ET and 4:00 PM ET on May 1, 2025, despite the absence of major news. Notably, just five minutes after this surge, both Meta ($META) and Microsoft ($MSFT) released earnings reports that significantly exceeded expectations (source: The Kobeissi Letter Twitter, May 1, 2025). This sequence suggests that market participants may have anticipated strong tech sector performance, impacting futures action ahead of official announcements. Traders should closely monitor futures movements for potential early signals of earnings momentum, especially during high-impact earnings seasons.

According to The Kobeissi Letter, while Dow, Nasdaq, and S&P 500 futures are posting strong gains, the Russell 2000 index is underperforming and remains in the red. This divergence highlights that small-cap stocks and small businesses are facing significant pressure, particularly as the trade war escalates. The market's reaction suggests traders are rotating out of small caps, anticipating continued headwinds for these equities due to their higher exposure to domestic and trade-sensitive economic factors (source: @KobeissiLetter, April 30, 2025).