Nasdaq futures slip as AI spending doubts return

The Nasdaq had the best session on Wall Street on Wednesday, up 1.05% at 26,703. Twelve hours later, US futures are lower and Asia is dumping the same shares. AI spending doubts are back in charge of the indexes, even after a strong set of numbers from Meta.

Tech carried the Nasdaq, then futures turned

Wednesday belonged to technology. The Nasdaq Composite added 1.05% to 26,703, the S&P 500 0.58% to 7,757 and the Dow Jones 0.69% to 52,856, per the Rio Times market wrap. Super Micro Computer jumped 9.6%, Zscaler 7.9% and SpaceX 7.9%, according to 247wallst.

Then the bell rang. Meta reported 3.83 dollars a share against 3.57 expected, on revenue of 64.6 billion, up 26% year on year, Investing.com reports. The stock gained more than 2% after hours. Tesla also beat, at 0.48 dollar a share, yet fell more than 3% as spending on AI and robotaxis ate into margins. Futures followed the second move, not the first. S&P 500 futures trade near 7,768, down 0.4%. Nasdaq 100 futures sit near 29,800, down 0.7%. Dow futures are near 52,879.

AI spending doubts hit Asia first

Overnight sellers went after exactly the same names. The Kospi dropped almost 2% toward 5,635 after a 3.29% rally the day before. The Nikkei 225 lost 1.6% below 64,000 and the Hang Seng around 2.1%, according to Invezz. Samsung Electronics fell more than 3% and SK Hynix close to 4%.

The point is blunt. Good results no longer settle the argument. Investors "were struggling to find a satisfactory level of AI capital spending," said Tim Waterer of KCM Trade, quoted by Bloomberg. Lee Kyoung min of Daishin Securities added that AI credit risk is cutting short every chip rebound. The question has shifted. Markets are no longer asking whether the orders arrive, they are asking who pays for them.

Oil at 110 dollars and Fed hike bets pile on

Brent rose 1.2% to 110.11 dollars on Thursday morning, with WTI up 1% at 98.12 dollars. Houthi attacks on a Saudi civilian airport and an oilfield pushed Washington to order some diplomats out of the kingdom, Reuters reports. Pricier crude means imported inflation and thinner margins, which leaves less room to pay up for growth.

Rates add to the load. CME FedWatch puts roughly a 90% chance on a policy rate hike in December, FXStreet notes, even as Fed officials keep saying there is no urgency to move on October 27 and 28. The 10 year Treasury yield holds 5.13% and gold has slipped back under 4,100 dollars. Fawad Razaqzada, analyst at StoneX, argues that rising oil makes the bullish case hard to defend. For indexes driven by tech multiples, that is two extra brakes on top of the AI doubts. Sessions like this one are where prop firm challenge accounts get wrecked.

Key levels today

Economic calendar

• 14:30 Paris, US weekly jobless claims. A clear jump trims December hike bets and gives the Nasdaq room. A low print keeps rate pressure on.
• 16:00 Paris, euro zone flash consumer confidence. A weak reading and both the DAX and the CAC 40 lose touch with Wednesday's US rally.
• Friday 10:00 Paris, euro zone October flash PMI. A composite under 50 puts the European slowdown back on the table, with the euro first in line.
• Tuesday 27 and Wednesday 28 October, Fed meeting. Markets price an 87.5% chance of no change. If the statement cracks the door open for December, growth stocks pay the bill.

The bottom line

The Nasdaq gained 1.05% on Wednesday, then AI spending doubts took over during the Asian session. With Brent at 110 dollars and a 90% chance of a December Fed hike, US indexes are advancing without a safety net.

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This is not investment advice. Informational content only.