U.S. Stock Index Futures Decline as Tech Sector Woes Worsen
U.S. stock index futures experienced a setback on Thursday evening, with the technology sector poised to continue its downturn.
This deterioration followed disappointing earnings reports from major corporations Amazon and Intel, which fell short of market expectations.
The Nasdaq 100 Futures suffered the steepest decline, plummeting by 2% to reach 28,975.0 points by 20:47 ET (00:47 GMT). Conversely, S&P 500 Futures dipped 0.8% to 7,690.25 points, while Dow Jones Futures exhibited modest resilience, gaining 0.04% to 52,533.0 points.
This dip in futures mirrored a lackluster session on Wall Street, where the technology sector remained beleaguered following disappointing earnings results from Alphabet.
The NASDAQ Composite index fell by 1.4%, significantly influenced by a staggering 12.6% loss from the parent company of Google.
Among the major indices, the Dow Jones Industrial Average showed the least volatility, as investors sought refuge in defensive sectors such as healthcare and utilities to mitigate the adverse effects of the ongoing tech decline.
Amazon and Intel Stock Prices Decline Following Disappointing Earnings
In aftermarket trading, Amazon.com Inc (NASDAQ:AMZN) witnessed a decline of 6.7%, extending its earlier loss of 4.3% during Thursday’s trading session.
The e-commerce and cloud computing titan fell short of both revenue and earnings projections for the September quarter, compounded by excessive expenditures in artificial intelligence, which further exacerbated the company’s negative free cash flow.
Amazon’s results have intensified scrutiny regarding the sustainability of elevated spending in AI, raising questions about whether the substantial investments in this domain can yield adequate returns.
These apprehensions gained traction in light of similarly disappointing figures from Alphabet Inc (NASDAQ:GOOGL), which displayed a concerning deterioration in profit margins resulting from AI-related expenditures.
Intel Corporation (NASDAQ:INTC) experienced a staggering near 23% drop in after-hours trading, as a robust third-quarter profit was overshadowed by pessimistic forecasts for the forthcoming quarter. Additionally, Intel’s Q3 revenues did not meet market expectations.

The company’s performance reflected diverging trends, revealing that while its server CPU division thrived on AI-induced demand, its PC segment is increasingly strained by escalating AI-related costs and a persistent decline in consumer demand.
The disappointing performances from Amazon and Intel followed similarly lackluster results from Samsung Electronics (KS:005930), exacerbating concerns regarding the sustainability of AI funding.
Source link: Finance.yahoo.com.






