Market Update: Stock Futures Dip as Tech Earnings Shift Focus Back to AI – Stay Informed with Live Updates!

Stock futures dipped on Wednesday night as investors processed the latest earnings from major tech companies and the Federal Reserve’s decision on interest rates.

Futures linked to the Dow Jones fell by 95 points, translating to a 0.2% decline. The S&P also dropped by 0.2%, while the Nasdaq 100 futures fell by 0.3%.

Tech giants like Alphabet, Meta, and Microsoft released their quarterly results, which many investors were eager to analyze for insights on artificial intelligence (AI) spending. Alphabet saw a bump of about 6% in its stock after reporting strong results. In contrast, Meta and Microsoft experienced declines of around 8% and 4%, respectively. These mixed earnings weighed heavily on the overall market during after-hours trading.

Meta achieved its highest revenue growth since early 2024, but it faced a significant setback due to a one-time charge of $15.93 billion related to President Trump’s One Big Beautiful Bill Act. This law is expected to impact U.S. federal tax payments for Meta in the foreseeable future. Microsoft’s shares dropped after the company revealed a $3.1 billion impact from its investment in OpenAI, triggering concerns about the sustainability of AI spending.

In the previous trading session, the Dow closed down roughly 0.2% after reaching a record high earlier in the day. The S&P finished flat, while the Nasdaq rose by nearly 0.6%.

Recently, Federal Reserve Chair Jerome Powell’s comments about interest rates unsettled the market. He suggested that another rate cut in December is not guaranteed. The Fed had just lowered its benchmark borrowing rate by a quarter percentage point, placing it between 3.75% and 4%.

Chris Maxey, chief market strategist at Wealthspire Advisors, commented, “The interest rate cut was the easy part as markets were giving the Fed breathing room.” He noted that the Fed’s cautious outlook on future cuts might lead to market fluctuations.

CFRA chief investment strategist Sam Stovall pointed out that if tech earnings indicate a quicker-than-expected boost from AI, the Fed might need to cut rates more than they currently plan. Historically, October is a volatile month for stocks, presenting potential buying opportunities for savvy traders.

As investors look ahead, many are focused on an important meeting between former President Trump and Chinese President Xi Jinping. This discussion may shed light on the ever-evolving U.S.-China trade relations, which remain a critical factor in global markets.

For more updates, you can check sources like CNBC for financial news and insights.

Source link

Breaking News: Markets,Stock markets,Markets,Alphabet Class A,Alphabet Class C,Meta Platforms Inc,Microsoft Corp,business news