Futures Rise as Constellation, Zscaler Gain, Nike Falls

Key Moments

Index Futures Edge Up After Nasdaq Record

U.S. equity futures moved higher on Tuesday, extending momentum from the prior session when the Nasdaq Composite ended at a record level. The move came as pressure from a recent spike in global bond yields eased and crude oil prices retreated on expectations for improved supply flows from the Gulf.

By 05:22 ET (09:22 GMT), futures tied to the Dow Jones Industrial Average were up 263 points, or 0.5%. S&P 500 futures added 19 points, or 0.3%, while Nasdaq 100 futures rose 91 points, or 0.3%.

Major U.S. benchmarks advanced on Monday, helped by continued strength in large technology names and persistent optimism surrounding artificial intelligence. The move extended a rally that started after Friday’s U.S. employment data showed weaker-than-anticipated job creation in September, leading traders to markedly reduce expectations for a Federal Reserve rate hike at its October meeting.

Zscaler Rallies After Reaffirming Long-Term and Near-Term Guidance

Zscaler shares gained 2.2% in premarket trading after the cybersecurity company reiterated its revenue and earnings projections for fiscal 2027 and its first quarter.

The company kept its full-year revenue forecast at $3.91 billion to $3.94 billion, matching the Bloomberg consensus of $3.93 billion. Adjusted earnings per share guidance was also left unchanged at $4.86 to $4.90, close to the $4.89 consensus figure.

For the first quarter, Zscaler reaffirmed its revenue outlook of $935 million to $939 million, broadly in line with the $938 million estimate, and maintained adjusted EPS guidance of $1.15 to $1.16, consistent with the $1.16 consensus.

Nike Slips After Berenberg Downgrade and Target Cut

Nike shares declined more than 1% in premarket trading after Berenberg lowered its rating on the sportswear group to Sell from Hold and slashed its price target to $27.50 from $49. The broker argued that the company has effectively settled for a reduced role in the broader sportswear landscape.

Analysts led by Nick Anderson said Nike’s move to reshape its sportswear operations around smaller focus categories signaled that the underlying market structure had shifted to the company’s disadvantage. They contended that declining barriers to entry are forcing established brands to face a widening group of competitors in increasingly fragmented niches, risking market share erosion if they do not adapt.

Nike’s performance-oriented business remains a relative bright spot, with first-quarter sales in that segment increasing at a high-single-digit percentage rate. Running, football, North American basketball, tennis and golf each posted double-digit growth.

However, the broader sportswear segment, which represents just under half of total company sales, fell by a low-double-digit percentage, while sales of the Jordan brand dropped by a mid-teens percentage.

Vaxcyte Pulls Back After Large Capital Raise

Vaxcyte stock fell 3.7% in premarket trading, retracing part of a steep prior-session gain as investors considered the dilutive impact of a $1 billion capital raise announced after Monday’s close.

The company launched concurrent underwritten public offerings totaling $1 billion, split between $500 million in common stock and pre-funded warrants and $500 million in convertible senior notes due 2032. Underwriters received a 30-day option to acquire up to an additional $75 million in each tranche.

The fundraising followed the disclosure of a significant clinical milestone. Vaxcyte said its VAX-31, a 31-valent pneumococcal conjugate vaccine candidate, met all 32 prespecified co-primary immunogenicity endpoints in the pivotal adult OPUS-1 Phase 3 trial, outperforming management’s expectations.

Constellation Energy Advances on Amazon Deal and Google Report

Constellation Energy shares rose 3% in premarket action after a major power supply agreement with Amazon and reports of a potential arrangement with Google reignited interest in the company, which is described as the largest U.S. nuclear power operator.

Under a contract announced on September 30, Amazon agreed to purchase 690 megawatts of output from Constellation’s Calvert Cliffs Clean Energy Center in Maryland through a 20-year agreement.

Constellation said the deal underpins more than $3 billion in investment at the facility and approximately 190 megawatts of new emissions-free capacity expected to be added between 2030 and 2032.

Further lifting sentiment, Bloomberg reported that Google is close to striking a separate nuclear power supply agreement with Constellation valued at $1 billion or more, with a formal announcement potentially imminent.

Freshworks Rises on S&P SmallCap 600 Inclusion

Freshworks stock climbed 3.9% in premarket trading after S&P Dow Jones Indices said the company will join the S&P SmallCap 600 index effective before the market opens on October 8. Freshworks is set to replace BioLife Solutions, which is being removed due to its pending acquisition by Repligen.

The decision, announced after Monday’s close, triggered an immediate rise in Freshworks shares in after-hours trading that carried through into Tuesday’s premarket session.

The upcoming index addition is also expected to create incremental demand for Freshworks stock, as passive vehicles and exchange-traded funds that track the S&P SmallCap 600 will need to buy shares ahead of the October 8 rebalancing.