Stock market today: Nasdaq leads S&P 500, Dow futures lower as Big Tech earnings hopes take a knock

Published On Oct 31, 2024, 7:13 AM

The stock market experienced lower futures driven by disappointing earnings reports from Meta and Microsoft, which heightened concerns over increased AI spending affecting profitability. Both firms, despite beating previous earnings forecasts, indicated a rise in expenditures related to AI infrastructure, leading to their shares dropping around 4% in premarket trading. This uncertainty has also impacted other major tech stocks like Amazon and Apple ahead of their earnings reports. Investors are cautious as they await key inflation data from the Personal Consumption Expenditures index, which may influence Federal Reserve policy decisions.

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Stock Forecasts

QQQView QQQ chart on TradingView

Negative

Given the recent earnings reports, especially concerning rising operational costs for major tech companies, we anticipate a continued trend of downward pressure on tech stocks in the near term. The overall sentiment in tech appears shaky amidst these concerns, likely impacting investor confidence.

SBUXView SBUX chart on TradingView

Positive

Starbucks is showing some signs of resilience with the new CEO leading changes aimed at optimizing operations. If executed successfully, this could position the company for better growth in the future. However, it remains to be seen how the market reacts in the short term.

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