- Nasdaq 100 futures fell 1.1% and S&P 500 futures lost 0.5% overnight, after the S&P 500 notched a three-day win streak and the Dow jumped 360 points on Wednesday. The Nasdaq Composite had closed 1% higher, helped by SpaceX and Tesla.
- Tesla slid about 3% after hours despite beating on revenue and earnings, after it cut its capital-spending forecast. Lam Research dropped 7% on a weak outlook, a direct hit to the chip-equipment trade.
- Meta rose 2% in extended trading after a revenue beat and strong guidance, and it narrowed its full-year data center capex range. Dan Ives said Meta’s spending was “better controlled than feared,” but that was not enough to offset the rest of the tape.
- The session tests whether the AI trade can absorb mixed signals from its biggest spenders and suppliers. Procter & Gamble, Lockheed Martin, Valero and Honeywell report Thursday, alongside weekly jobless claims.
What Happened?
US stock futures fell overnight as investors digested earnings from Meta and Tesla, according to CNBC’s live coverage. The decline came after a strong Wednesday session in which SpaceX and Tesla lifted the Nasdaq. Asian markets also traded lower, and European stocks opened in the red. Oil prices rose on reports of possible renewed US strikes on Iran.
Why It Matters?
The reaction shows the market is now pricing AI by its returns rather than its ambition. Meta convinced investors its spending pays off in the core business, while Tesla’s results and spending outlook drew the opposite verdict. Lam Research’s guidance matters more broadly, because equipment demand is a read-through on how fast chipmakers expect to expand capacity. With the Fed meeting next week and oil near $100, there is less room for disappointment in high-multiple tech. A failed rally after a three-day win streak would suggest the recent rebound was positioning-driven.
What’s Next?
Watch the open for whether losses concentrate in semiconductors and Tesla or spread across megacap tech. Jobless claims at 8:30 a.m. ET will feed into Fed expectations ahead of the October 27 and 28 meeting. Thursday’s earnings from industrial and consumer names will test whether strength outside tech can offset AI jitters.
