Nasdaq 100 Futures Slide 1.8% as AI Trade Stumbles: Markets Wrap
(Bloomberg) — The rebound in the artificial intelligence trade is faltering after earnings from some of the sector’s biggest spenders failed to sustain the positive mood, with investors turning to Treasuries for safety.
Nasdaq 100 futures stumbled 1.8%, threatening to erase much of the index’s 2.2% gain this week after mixed reactions to results from Meta Platforms Inc. and Tesla Inc. Meta climbed in late trading after topping revenue estimates and raising its capital spending plans, while Tesla fell as it cut back on spending.
Weaker-than-expected guidance from chip-equipment maker Lam Research Corp. sent its shares more than 7% lower and weighed on peers. S&P 500 contracts fell 1%. Oil prices rose following deadly attacks in Saudi Arabia, adding to the downcast mood as Brent crude topped $112 a barrel.
The latest round of results is testing whether earnings can keep the AI trade on track. Concerns are mounting that heavy spending on data centers and computing capacity will take longer to pay off, while this year’s rally has fueled worries about stretched valuations and an AI bubble.
“The message seems increasingly clear: the market is still willing to reward heavy AI investment, but is becoming much more demanding about returns,” said Santiago Mateo, head of equity at CaixaBank Asset Management. “Investors want evidence that investment is translating into stronger growth, better monetization and ultimately earnings.”
Treasuries rose across the curve, with 10-year yields down four basis points to 5.08%. German bunds were bid higher in Europe, while French yields continued their advance. The Japanese yen and Swiss franc benefited from the flight to safety, while the dollar slipped.
Europe’s smaller exposure to technology didn’t spare it from the equity selloff. The Stoxx 600 fell 1%, with banks and mining stocks leading declines on a busy day for earnings. Birkin bag maker Hermès International SCA fell more than 5% after reporting no sales growth in the region that includes China.
What Bloomberg Strategists Say…
“Macro investors may find it tougher to turn optimistic today as there is now a quiet period on tech earnings until Microsoft and Alphabet in the middle of next week. This will put firm oil prices back into the center of attention, especially after US State Department ordered some diplomats out of Saudi Arabia.”
— Mark Cranfield, MLive Strategist. Click here for the full analysis.
Corporate Highlights:
Barclays Plc said it’s cutting 5,000 jobs, or about 5% of total headcount, as part of a “technology-enabled” effort to reduce costs as it adopts artificial intelligence across the bank. Nestle SA posted strong third-quarter sales growth as demand for snacks and pet food strengthened in emerging markets. Hermès International SCA reported no sales growth in the region that includes China last quarter. The Chinese AI pioneer DeepSeek has raised about 100 billion yuan ($15 billion) in its latest fundraising round, one of the country’s largest ever. SAP SE reported higher growth for its cloud products than anticipated in a sign that the boom in artificial intelligence hasn’t undermined demand for the German software maker’s offerings. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 1% as of 9 a.m. London time S&P 500 futures fell 1% Nasdaq 100 futures fell 1.8% Futures on the Dow Jones Industrial Average fell 0.6% The MSCI Asia Pacific Index fell 1.8% The MSCI Emerging Markets Index fell 2.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1235 The Japanese yen rose 0.6% to 157.18 per dollar The offshore yuan was little changed at 6.6728 per dollar The British pound rose 0.1% to $1.3408 Cryptocurrencies
Bitcoin fell 2.9% to $82,117.29 Ether fell 2.6% to $2,426.95 Bonds
The yield on 10-year Treasuries declined four basis points to 5.08% Germany’s 10-year yield declined three basis points to 3.40% Britain’s 10-year yield was little changed at 5.38% Commodities
Brent crude rose 3% to $112.10 a barrel Spot gold fell 1.2% to $4,089.31 an ounce This story was produced with the assistance of Bloomberg Automation.
©2026 Bloomberg L.P.
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