Stock market today: Nasdaq, S&P 500 futures sink as Meta, Microsoft revive Big Tech's AI spending worries

Published On Oct 31, 2024, 7:41 AM

Nasdaq and S&P 500 futures have declined due to concerns surrounding potential rising costs associated with AI investments following the earnings reports from Meta and Microsoft. Both companies reported better-than-expected earnings but indicated they would increase spending on AI infrastructure, leading to fears about the impact on profitability. This negative outlook has affected other major tech stocks like Amazon and Apple, which are also set to report earnings soon. Investors are additionally wary of upcoming economic indicators, including inflation data, ahead of a Federal Reserve policy decision.

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Stock Forecasts

MSFTView MSFT chart on TradingView

Negative

With rising AI spending concerns impacting profitability projections for major tech companies, the sentiment around the sector is likely to remain negative in the short term. Investors may look for safer bets outside the tech sector until more clarity is provided by upcoming economic data and earnings reports from key players.

METAView META chart on TradingView

Negative

Given the current negative sentiment towards big tech stocks stemming from increased AI spending concerns, and upcoming earnings from major players also under scrutiny, the overall market for tech stocks is predicted to trend downward, impacting related sectors.

AMZNView AMZN chart on TradingView

Negative

As investors identify potential volatility in tech stocks due to raised spending concerns, companies like Amazon and Apple are likely to face headwinds. Immediate response from investors could be cautious leading into their earnings reports, affecting stock prices negatively.

AAPLView AAPL chart on TradingView

Negative

The market is bracing for wider implications from rising costs in the tech sector. Pulse of investor sentiment could direct market trends downwards if upcoming economic reports reflect inflation pressures, influencing technology stocks significantly.

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