U.S. equity futures declined late Wednesday as markets processed third-quarter results from Meta Platforms and Tesla. Meta shares rose in after-hours trading on a revenue beat, while Tesla shares fell despite better-than-expected earnings, with investors weighing AI spending against valuations.
U.S. equity futures slipped late Wednesday as investors digested third-quarter earnings from major technology companies, including Meta Platforms and Tesla. According to CNBC, Dow Jones Industrial Average futures ticked down 0.3%, or 170 points, while S&P 500 futures fell 0.5% and Nasdaq-100 futures dropped 0.7%. The move followed a positive session on Wall Street, where the S&P 500 secured a three-day winning streak and the Nasdaq Composite closed 1% higher, buoyed by strong results from SpaceX and Tesla earlier in the week.
Meta Platforms shares gained 2% in extended trading after the company delivered a revenue beat and provided strong guidance for the current quarter. Dan Ives, partner and senior managing director at Yorkville Ives, noted in a post-earnings reaction that the quarter showed AI investment paying off in the core business. Ives added that spending was "better controlled than feared," as Meta narrowed the range for its full-year data center-related capital expenditures.
Meanwhile, Tesla reported a better-than-expected top and bottom line for its third-quarter results, yet its shares were last off 3% in after-hours trading. According to Investopedia, options pricing had suggested traders expected the stock to swing up to 5% in either direction by the end of the week, with a recent level around $386. Analysts had expected Tesla to report $28.17 billion in revenue, roughly flat year-over-year, with adjusted earnings per share declining to 44 cents from 50 cents a year ago.
Global markets also reflected the cautious sentiment. In Asia, markets opened lower Thursday, with South Korea's Kospi falling more than 1% and Japan's Nikkei 225 declining 0.73%. Australia's S&P/ASX 200 lost 0.53%, while Hong Kong's Hang Seng Index was down 1.16%. Mainland China's CSI 300 slipped 0.37%. The broader market action highlights a shift in focus toward whether robust artificial intelligence spending can justify elevated valuations across the technology sector, even as individual companies report strong fundamental results.