Investing.com – US stock futures were trading higher on Friday, with a generally positive earnings season boosting sentiment ahead of next week’s key Federal Reserve meeting.

As of 06:30 ET (10:30 GMT), the contract was up 55 points, or 0.2%, trading 14 points, or 0.3% higher, and climbed 80 points, or 0.5%.

Benchmark indices on Wall Street closed in a mixed mood on Thursday, with the blue chip closing up 160 points, or more than 0.5%. This was its ninth consecutive positive finish and longest streak of growth since 2017, and its highest finish since March 2022.

However, the tech-heavy declined nearly 300 points, or 2.1%, its biggest one-day drop in four months, on the back of poor results from streaming giant Netflix (NASDAQ:) and EV maker Tesla (NASDAQ: ).

positive earnings help emotions

Earnings season has been largely rewarding so far, with 73% of companies already reporting beating analysts’ expectations, according to FactSet data.

Banks dominated the first week, benefiting from rising interest rates, although major lenders faced a slowdown in deals.

Regional lenders like Comerica (NYSE: ) and Regions Financial Corporation (NYSE: ) ended the week with the credit card giant down. American Express (NYSE: ), but attention has largely turned to next week and data from some of the country’s biggest tech players, including traditional powerhouses like Microsoft (NASDAQ: ), Google owner Alphabet (NASDAQ: ), and Amazon (NASDAQ: ).

Microsoft/Activision deal now more likely

A potential $69B alliance between Microsoft and video game maker Activision Blizzard (NASDAQ: ) looks more likely to move forward after the US Federal Trade Commission suspended an in-house judge’s request to block the deal.

Regulators in both the US and the UK have expressed concern about the effect the merger could have on competition, but their opposition is showing signs of softening.

Microsoft and Activision have now extended the deadline for completing the transaction to October 18.

Fed meeting looks likely

Away from the corporate sector, next week will see a major policy decision, with the US central bank widely expected to raise borrowing costs by up to 25 basis points.

Whether the authorities will then decide to reverse the prolonged tightening cycle or signal further increases is likely to guide sentiment in the coming weeks.

Oil rises on hopes of Chinese stimulus

Crude oil prices edged higher on Friday and ended a volatile week on rising hopes that China, the world’s biggest crude importer, would take more stimulus measures to support its faltering economic recovery.

The country revealed disappointing numbers earlier this week, prompting Beijing on Friday to unveil new measures aimed at boosting local spending and raising hopes of more widespread support.

As of 06:30 ET, futures were trading up 1.3% at $76.63 a barrel, while the contract climbed 1.3% to $80.64. Both contracts are headed for gains of around 1% this week.

Additionally, it fell 0.3% to $1,965.75/oz, while trading largely unchanged at 1.1126.

(Oliver Gray contributed to this item.)