U.S. futures stumbled Wednesday night as traders digested mixed earnings from two of the market’s biggest tech names – Tesla and Meta – while investors keep a wary eye on soaring AI‑related spend.
S&P 500 futures slipped 0.4% to 7,768.25, Nasdaq‑100 futures fell 0.7% to 29,800, and Dow Jones futures edged down 0.3% to 52,879. The numbers signal a cautious tone as the third‑quarter earnings marathon gathers pace.
Tesla’s earnings surprise can’t shake AI worries
Tesla posted adjusted earnings of $0.48 per share on $28.05 billion in revenue, beating consensus of $0.45 and $27.92 billion respectively. Yet the stock dropped more than 3% in after‑hours trading. Analysts point to hefty AI and robotaxi investments that continue to squeeze margins, leaving investors hungry for clearer profit pathways.
Meta delivers a brighter beat
Meta posted $3.83 earnings per share versus the expected $3.57, and revenue jumped 26% to $64.6 billion, outpacing the $63.34 billion forecast. Strong ad demand and higher user engagement powered the uplift, even as a sizable legal settlement added to expenses. The stock nudged up over 2% after hours.
Earlier in the session, SpaceX’s first profit as a public company and a rally in Super Micro Computer gave the market a brief lift, but the AI‑spending narrative kept the focus on Tesla and Meta.
Higher crude prices – Brent above $110 a barrel – and lingering rate‑hike concerns also lingered in the background, hinting at broader market volatility ahead of the Fed’s upcoming policy meeting.
Key Takeaways for Tech‑Focused Investors
- AI‑heavy firms like Tesla may face short‑term profit pressure despite earnings beats.
- Meta’s ad‑revenue resilience suggests a more defensive play amid macro uncertainty.
- Oil price spikes and potential Fed tightening could weigh on broader market sentiment.
- Upcoming earnings from Procter & Gamble, Western Digital, Lockheed Martin and Honeywell will add further direction.