Stock futures fell early Thursday as investors digested mixed earnings reports from tech giants Meta and Tesla. While Meta reported a revenue beat and strong guidance, Tesla’s shares dipped despite better-than-expected results.
In other corporate news, Nestlé noted a challenging U.S. market, while defense firm Thales and bank Barclays reported strong earnings and outlooks. European markets were set for a lower open, contrasting with a resilient European car market and an appreciating Indian rupee.
U.S. equity futures experienced a decline early Thursday, as investors processed third-quarter earnings reports from major technology companies, including Meta Platforms and Tesla.
S&P 500 futures fell 0.66%, Nasdaq-100 futures dropped 1.32%, and Dow Jones Industrial Average futures were down 0.28%, or 147 points.
Asian markets also traded lower, with South Korea's Kospi down over 1%, Japan's Nikkei 225 declining 0.73%, Australia's S&P/ASX 200 losing 0.53%, Hong Kong's Hang Seng Index down more than 2%, and China's CSI 300 down 0.37%.
In extended trading, Meta shares gained 2% after the company beat revenue expectations and provided strong guidance for the current quarter. Tesla, however, saw its shares fall 3% despite reporting better-than-expected top and bottom-line results for the third quarter.
Dan Ives, partner and senior managing director at Yorkville Ives, noted that Meta's quarter demonstrated the payoff of AI investments in its core business, with spending being "better controlled than feared." Meta also narrowed its full-year data center-related capital expenditures range.
This follows a positive trading day on Wall Street, where the S&P 500 achieved a three-day winning streak, the Dow Jones Industrial Average rose 360 points, and the Nasdaq Composite closed 1% higher, boosted by gains in SpaceX and Tesla.
Blowout quarterly results from SpaceX had previously fueled enthusiasm for the artificial intelligence trade, lifting shares of Micron Technology and Advanced Micro Devices. Super Micro Computer also contributed to the positive sentiment by raising its fiscal first-quarter revenue outlook.
Nvidia announced plans to expand its global manufacturing capacity to meet the growing demand for its accelerated computing and AI infrastructure solutions.
Looking ahead, investors are anticipating earnings reports from Procter & Gamble, Lockheed Martin, Valero Energy, and Honeywell. Weekly initial jobless claims data will also be released.
In other news, Nestlé CEO Philipp Navratil commented on the challenging U.S. market due to budget-strained shoppers seeking value, despite strong global results. Defense group Thales raised its full-year outlook amid a significant rearmament push, and Barclays reported a 12% year-on-year rise in third-quarter pre-tax profit, initiating a new £500 million share buyback program.
European stock markets were expected to open lower, with futures for the Stoxx 50, CAC 40, DAX, FTSE MIB, and FTSE 100 all indicating declines. The European car market showed resilience, with new car registrations up 5.7% year to date, and electric vehicle sales rising.
The Indian rupee has appreciated for eight straight sessions against the dollar, its longest strengthening streak since March 2025, supported by central bank intervention and foreign inflows. China's benchmark CSI 300 index entered bear-market territory, falling 20% from its June peak amid a prolonged sell-off.
The Bank of Korea maintained its policy rate at 3% but signaled that the tightening cycle may not be over. In Asia, markets were mixed, with South Korea's Kospi down and Japan's Nikkei 225 gaining. IBM's stock showed volatility after its earnings report, initially popping before trading down. Southwest Airlines cut its 2026 profit forecast due to higher fuel prices. Stocks making notable after-hours moves included Meta Platforms, Tesla, and Lam Research.
