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U.S. equity futures moved firmly lower in early Thursday trading, dragged down by losses for megacap tech stocks, as investors worked through another round of earnings from the so-called Magnificent 7 while bracing for a key inflation reading prior to the opening bell.
Stocks ended lower yesterday, with the S&P 500 slipping 19 points to trim its October gain to less than 1%, amid more megacap tech stock declines and a surge higher in Treasury bond yields tied to stronger-than-expected jobs data and a solid reading of third quarter GDP.
Overnight earnings from Meta Platforms (META) and Microsoft (MSFT) , meanwhile, underscored the massive costs linked to the expansion of AI technologies and the toll that is taking on profit margins across the world’s biggest tech companies.
Amazon (AMZN) , as well as Apple (AAPL) , will also report September quarter updates after the close of trading, with the former also expected to update on capital spending plans and the latter likely to offer detail on demand for its newly-launched iPhone 16.
Apple and Amazon will round out a busy week of megacap tech earnings with September quarter updates after the closing bell.
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In the bond market, benchmark 10-year note yields are holding near the highest levels since early July, and were last marked at 4.288%, following yesterday’s ADP jobs data and today’s PCE inflation report at 8:30 am Eastern time.
Renewed inflation concerns, tied in part to the outperforming economy but also to the added borrowing that is likely to come from either winner in next week’s presidential election, has also lifted rate-sensitive 2-year notes to a multi-month high of 4.174%.
Related: Meta earnings blast forecasts, but Facebook parent sees big capex increase
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was last marked 0.05% higher on the session at 104.040 and on pace for its best monthly gain in two years.
Heading into the start of the trading day on Wall Street, sharp pullbacks for Meta and Microsoft are helping shave around 210 points from the Nasdaq at the opening bell, with the Dow Jones Industrial Average called 225 points to the downside.
The S&P 500, which is now up 0.89% heading into the final trading day of October, is priced for a 45 point opening bell decline.
In overseas markets, Europe’s Stoxx 600 fell 0.71% in early Frankfurt trading, extending the benchmark’s decline to a third consecutive session, while Britain’s FTSE 100 fell 0.76% following yesterday’s Labour budget statement that included a massive increase in public spending and the biggest tax increases since 1993.
More Wall Street Analysts:
Analysts update Meta stock price target with Q3 earnings in focusAnalysts update outlook for Nvidia’s Blackwell chips amid AI boomAnalyst reboots Reddit stock price target ahead of earnings
Overnight in Asia, the Bank of Japan held its key lending rates steady following a two-day policy meeting in Tokyo, while the Nikkei 225 slipped 0.5% into the close of trading as the yen held steady at 152.48 against the U.S. dollar.
The regional MSCI ex-Japan benchmark, meanwhile, was marked 0.44% lower heading into the final hours of trading.
Related: Veteran fund manager sees world of pain coming for stocks
