Stock Futures Rise as Traders Weigh Earnings and AI Risks
U.S. stock futures rose Tuesday night as investors assessed the latest earnings reports, with Nasdaq-100 futures up 0.8%. SpaceX shares climbed after the…
U.S. stock futures rose Tuesday night as traders assessed the latest earnings reports, with Nasdaq-100 futures gaining 0.8% and SpaceX shares climbing after the company reported stronger revenue. The moves came as investors balanced corporate results against questions about debt-backed artificial-intelligence spending.
Futures tied to the Dow Jones Industrial Average rose 21 points, or less than 0.1%, while S&P 500 futures gained 0.3%, CNBC reported. In regular trading, the Dow advanced nearly 530 points, or 1%, supported by a post-earnings rise in 3M.
That matters for investors because earnings are helping steer market sentiment even as traders scrutinize how much companies are spending to build artificial-intelligence infrastructure, and whether demand will justify that investment.
SpaceX shares surged 8% after the company said revenue grew 161% in the third quarter. Elon Musk also said SpaceX and Tesla had formed special committees to discuss a merger. Tesla shares rose 1%.
Short pause. The broader market was mixed at the close: the S&P 500 gained 0.3%, while the Nasdaq Composite ended marginally lower.
AI spending and earnings in focus
Investors have questioned the sustainability of the AI trade, with attention on debt-backed investments and whether demand for infrastructure supports companies’ spending. Seagate Technology added 2% in Tuesday’s regular trading, while CoreWeave advanced more than 1%.
Christian Mueller-Glissmann, head of asset allocation for Goldman Sachs Research, said the earnings season could help propel stocks as the year winds down. In a note, he wrote: “Near term there might be more volatility due to [artificial intelligence] concerns, Middle East tensions and midterm elections, but we think earnings support with lighter positioning and lower valuations should help equities into year-end.”
Investors were due to get another read on the AI trade Wednesday, when Meta Platforms was scheduled to report after the bell. The company had rolled out its latest AI model, Muse Wonder, earlier in the month; CNBC reported that the model was available only to paying users. Results from Tesla, IBM and Southwest Airlines were also expected Wednesday.
Moves overseas added to the mixed picture. South Korea’s Kospi advanced 4.3%, rebounding from losses on Tuesday, and Japan’s Nikkei 225 rose 1.6%. Hong Kong’s Hang Seng gained 0.9%, mainland China was flat at the open, and Australia’s S&P/ASX 200 slipped 0.1%.
South Korea’s exchange briefly halted program trading after Kospi 200 futures surged 5%, triggering a “sidecar” mechanism intended to curb excessive market volatility. The five-minute curb came as technology and semiconductor stocks recovered from a sharp sell-off earlier in the week, according to CNBC.
Oil prices edged lower in Tuesday’s session. West Texas Intermediate crude futures slipped 1.8%, and Brent crude futures lost 0.7%.
Investors’ next focus is the scheduled earnings from Meta Platforms, Tesla, IBM and Southwest Airlines on Wednesday, which could provide fresh signals on corporate performance and AI-related spending.
Source: cnbc.com
