Wall St set for lower open as AI jitters rekindle, oil gains
SPY•U.S. stock futures pointed lower, with Nasdaq 100 futures down 1.61%, S&P 500 futures down 0.94% and Dow futures down 0.51%, as concerns about AI spending pressured growth stocks and oil climbed more than 2.8% to $111 a barrel.
1. AI concerns pressure stocks
Wall Street's main indexes were set to open lower as investors questioned the outlook for AI after results from Tesla and Meta failed to ease concerns. Tesla fell 3.5% in premarket trading after cutting its annual capital expenditure forecast, while Meta slipped 2.4% after introducing new non-voting shares to help fund its AI expansion. SpaceX and Super Micro also fell as investors focused on investment costs and uncertain returns.
2. Oil and yields move
Brent crude rose more than 2.8% to $111 a barrel after further Houthi attacks in Saudi Arabia stoked fears of supply disruptions and a wider Middle East conflict. The 10-year yield fell to around 5.0357%, while weekly jobless claims unexpectedly declined, supporting expectations that the Federal Reserve will leave interest rates unchanged next week.
3. Other company moves
Blackstone fell 3.2% after quarterly earnings declined, and American Airlines dropped 3.8% after forecasting an annual loss as jet fuel costs outpaced fare increases. Spotify rose 6.6% after forecasting fourth-quarter profit above Wall Street estimates. S&P 500 third-quarter earnings growth is now forecast at 32.3%, up from 30.7% previously.
