Nasdaq-100 futures fell early Friday after Amazon and Intel shares slid following quarterly results. The declines come as investors scrutinize the AI trade, and the Nasdaq Composite is heading for a 2.5% fall in October.
Nasdaq-100 futures lost 2.1% early Friday, while futures tied to the S&P 500 slid 1%. Dow futures fell 104 points, CNBC reported.
Amazon and Intel lead the slide
Amazon shares lost 6% in extended trading after third-quarter earnings and revenue fell short of Wall Street's expectations. The company earned $1.89 per share on revenue of $201.94 billion, against LSEG estimates of $1.96 per share on $202.31 billion. It also maintained its 2026 capital expenditures forecast of $220 billion.
Intel fared worse, sliding 21% after it issued a weak outlook for the current quarter and pointed to a slowdown in PCs. The chipmaker sees adjusted earnings of 25 cents per share on revenue of $15 billion to $16 billion, while analysts were looking for 43 cents and $17.1 billion, per LSEG.
Alphabet's drop drags the Nasdaq Composite
Alphabet shares lost 12% in regular trading Thursday after the company missed on earnings and revenue in the third quarter. The slide dragged the Nasdaq Composite to a 1.4% loss, while the S&P 500 fell 0.3%.
The stock also formed a death cross when its 50-day moving average, roughly $340.26, crossed below its 200-day moving average of about $340.93.
AI spending worries weigh on October
Friday marks the final trading day in October, and the month has been rocky for the AI trade. Investors are paying close attention to companies' spending on the build-out, and Alphabet and Microsoft haven't lifted their capital expenditures forecasts.
Neoclouds face scrutiny over their debt levels too. CoreWeave shares have cratered 30% in October, and Nebius is heading for a 27% decline on the month.
For the month, the Nasdaq Composite is heading for a 2.5% fall. The S&P 500 is on track for a 0.9% advance, while the Dow is on pace to rise 2.8%.
Source: CNBC
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