Nasdaq futures sink as Amazon, Intel intensify AI spending fears
SPY•Nasdaq futures fell 2.41% after Amazon signaled higher capital spending next year and Intel warned it would burn cash this year. Amazon and Intel shares were down 6.3% and more than 25%, respectively, in premarket trading.
1. AI spending weighs on futures
Nasdaq futures slid more than 2% as Amazon's plans for continued heavy AI spending and Intel's cash-burn warning heightened concerns about infrastructure costs and the timeline for returns. Dow futures were up 0.17%, while S&P 500 futures fell 1.03%.
2. Shares and market moves
Amazon shares fell 6.3% after the company reported a sharp third-quarter cash outflow and signaled another increase in capital expenditure next year. Intel shares dropped more than 25% after it warned of cash burn this year, citing a weak PC market, manufacturing bottlenecks and spending to expand production. The two companies were set to lose about $300 billion in combined market value if their losses held.
3. Broader market context
Alphabet extended losses after a record selloff in the previous session, while Nvidia and AMD also fell. Chevron and Exxon Mobil rose 1.5% each after reporting third-quarter profits above estimates. Amazon, Google, Microsoft and Meta together spent more than $200 billion in the third quarter, analyst Ipek Ozkardeskaya said.
