Contracts for the Nasdaq 100 Index slipped 0.6% and those for the S&P 500 dropped 0.4% in early Asian trading following a split set of results from Tesla Inc. and Meta Platforms Inc. The automakers shares fell 3.1% in post-market trading after cutting its capital-spending forecast. Meta Platforms, however, rose 2% after hours as the company boosted its bet on AI with spending outlook.
Contracts for the Nasdaq 100 Index slipped 0.6% and those for the S&P 500 dropped 0.4% in early Asian trading following a split set of results from Tesla Inc. and Meta Platforms Inc.
The automakers shares fell 3.1% in post-market trading after cutting its capital-spending forecast.
Meta Platforms, however, rose 2% after hours as the company boosted its bet on AI with spending outlook.
Contracts for the Nasdaq 100 Index slipped 0.6% and those for the S&P 500 dropped 0.4% in early Asian trading following a split set of results from Tesla Inc. and Meta Platforms Inc. The automaker’s shares fell 3.1% in post-market trading after cutting its capital-spending forecast. Meta Platforms, however, rose 2% after hours as the company boosted its bet on AI with spending outlook.
Asian benchmarks were mixed in early Thursday trading, with South Korean shares falling 0.2% while Japanese stocks edged higher.
US equity-index futures fell after mixed earnings from megacap companies cast doubt on the durability of this week’s rebound in the artificial intelligence trade. Crude oil climbed as tensions flared in the Middle East.
“It’s all about earnings,” said Matt Orton, chief market strategist at Raymond James Investment Management. “There’s definitely a tension in the market between the growth path of the AI names and the ability to finance the industry.”
Elsewhere, West Texas Intermediate crude climbed toward $98 a barrel after swinging in a $4 range Wednesday. Brent jumped 1% to trade above $110. Treasuries fell in the New York session.
The latest corporate results will test whether earnings can keep the AI trade on track as investors weigh strong growth against the mounting cost of funding the industry’s expansion. Concerns have grown in recent weeks that heavy spending on data centers and computing capacity may take longer to generate returns.
Tesla’s capital expenditures will be around $20 billion this year, the company said Wednesday after reporting earnings results. That marked a reversal from earlier this year, when Tesla raised the target to more than $25 billion.
Averytin News Financial update.