Shares steady as Apple earnings near, oil eases
SPY•Asian shares steadied as investors awaited Apple earnings, while oil prices eased during talks aimed at ending the US-Israeli war on Iran. S&P 500 futures rose 0.4% and Nasdaq futures gained 0.8%; Brent fell 2.0% to $111.15 a barrel.
1. Markets await Apple results
Share markets steadied in Asia as investors looked to Apple's earnings later in the day for relief from concerns about AI spending. Analysts expected quarterly earnings per share of $2 on revenue of $113 billion, and investors were also watching for guidance on early iPhone 18 sales. S&P 500 futures rose 0.4%, while Nasdaq futures gained 0.8% after the Nasdaq fell almost 7% in October.
2. AI spending concerns persist
Goldman Sachs analysts expect hyperscaler capital spending to nearly double to $800 billion this year and rise to $1.2 trillion in 2027. They see S&P 500 earnings growth slowing from nearly 30% in 2026 to 18% the following year. Intel's shares fell nearly 29% on Friday, raising concerns for other chip groups, including AMD.
3. Oil retreats, rates in focus
Brent futures fell 2.0% to $111.15 a barrel, while US crude eased 2.3% to $101.73. Ten-year Treasury yields edged up to 4.941%, and futures implied a 72% chance of a quarter-point Federal Reserve rate hike in December. Investors were also watching for the US manufacturing survey and Friday's payrolls report.
