How are stock-index futures trading:
S&P 500 futures are down 0.8%.
Dow Jones Industrial Average futures are off 0.6%.
Nasdaq 100 futures are sliding 1.1%.
On Wednesday, the Dow Jones Industrial Average fell 92 points, or 0.22%, to 42142, the S&P 500 declined 19 points, or 0.33%, to 5814, and the Nasdaq Composite dropped 105 points, or 0.56%, to 18608.
Futures show a weak start for trading on Wall Street as poorly-received earnings from Meta Platforms and Microsoft call into question the valuations afforded the market’s dominant mega-cap tech sector.
“There is a general risk off tone to markets, says Kathleen Brooks, research director at XTB.
“When it comes to AI, the market wants to see stellar growth rates, and there is some concern about a slowdown in Microsoft’s generative AI business…Overall, big tech is sensitive to any cracks in the AI narrative and is ripe for a sell off are a strong performance in recent weeks,” Brooks adds.
Investor sentiment is likely also being pressured by the too-close-to-call U.S. election on November 5. The CBOE VIX index, a volatility measure known as Wall Street’s fear gauge, is jumping 7.3% to 21.84.