Wall Street futures dip after AI rout, telecoms slide
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
Oct 23 : Wall Street futures ticked lower on Friday as caution prevailed after a sharp selloff in AI-linked stocks over concerns about the sector's massive funding requirements, while telecom shares slid on fears of increased competition from SpaceX.
AT&T, Verizon and T-Mobile were down over 3 per cent in premarket trading after a report said SpaceX was in talks with cellular infrastructure companies about launching a nationwide wireless carrier program. US cell tower operators, however, gained from this news, with Crown Castle up 8.5 per cent and American Tower up 5.6 per cent.
SpaceX shares gained 2.2 per cent.
AI-related shares swung sharply this week, first coming under pressure over CoreWeave's debt burden and the cost of financing AI investment, then rallying on Wednesday after upbeat results from SpaceX and Super Micro.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
The gains reversed on Thursday and the tech-heavy Nasdaq fell nearly 3 per cent. The slide accelerated following Meta's nearly 8 per cent decline after the Facebook parent reported its first cash outflow in more than a decade amid concerns over its AI-related expenditures.
In premarket trading on Friday, CoreWeave rose 2 per cent, while 'Magnificent 7' stocks were mixed, with up 0.7 per cent and Microsoft down 0.6 per cent.
At 06:09 a.m. ET, Dow E-minis were down 308 points, or 0.58 per cent, and S&P 500 E-minis were down 15.5 points, or 0.2 per cent. Nasdaq 100 E-minis were down 0.75 points, or flat.
Brent crude held near a more than five-month high amid Middle East supply concerns, adding to inflation worries ahead of the Federal Reserve's policy meeting next week.
Nasdaq was on track for a weekly loss, while the benchmark S&P 500 and the blue-chip Dow remained higher for the week, supported by gains in defensive sectors as investors sought refuge from the volatility in technology stocks.
Market focus remains on the earnings season. American Express and SLB, among others, are set to report later in the day.
S&P 500's third-quarter profit growth is now forecast at 32.3 per cent, up from 30.7 per cent previously, according to LSEG data.
In other premarket moves, gold miner Newmont fell 1.5 per cent after reporting quarterly results and warning that unit costs are expected to trend higher in 2027.
Bloom Energy rose 1.7 per cent after the energy firm raised its fiscal 2026 forecast.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app