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1) Pre-Market Performance
U.S. equity-index futures pointed lower before the open, with weakness concentrated in growth and AI-linked shares. Nasdaq 100 futures were down 346.0 points, or 1.15%, to 29,633.5; S&P 500 futures fell 31.0 points, or 0.40%, to 7,752.3; and Dow Jones futures declined 157.0 points, or 0.30%, to 52,539.0.
European markets were firmer in morning trade. The FTSE 100 rose 47.29 points, or 0.44%, to 10,741.79; France’s CAC 40 gained 54.20 points, or 0.69%, to 7,941.16; and Germany’s DAX advanced 182.35 points, or 0.71%, to 25,886.37.
Commodities were softer as energy and metals eased from recent elevated levels. Brent crude traded near $110.67, down 0.87%, while WTI crude was around $101.90, down 0.86%. Gold futures were little changed at roughly $4,049.40, down 0.05%, and copper slipped 0.06% to about $6.6660. In foreign exchange, the U.S. Dollar Index was near 102.08, up about 0.06%, while the dollar held around 157.86 yen.
2) Hot News
- AI spending scrutiny pressures growth futures. Nasdaq futures led the decline as investors reassessed the payoff from heavy artificial-intelligence infrastructure spending after a mixed set of large-cap technology earnings. The market reaction showed a sharper preference for companies demonstrating cash-flow leverage from AI investments, while penalizing names where capital intensity appeared to be rising faster than near-term monetization. Read more
- Global equities diverge as Europe outperforms U.S. tech futures. European benchmarks advanced even as U.S. index futures weakened, highlighting a regional split ahead of the New York open. Investors are balancing resilient overseas equity performance against U.S. megacap-driven pressure.
- Oil eases but remains a key cross-asset risk. Crude prices slipped in pre-market trading but remained high enough to keep inflation sensitivity and margin pressure in focus across transport, industrial and consumer sectors. Energy-market headlines continue to be watched closely given recent volatility tied to Middle East supply-risk concerns. Read more
- Earnings breadth broadens beyond megacap technology. The earnings tape is moving into industrials, pharmaceuticals, payments and consumer-facing names, giving investors a broader read on demand, pricing power and margins. Pre-market reports from Caterpillar and Eli Lilly added to the overnight technology-driven moves, while Amazon and Intel remain on deck after the close.
3) U.S. Stock Focus
- Alphabet — Stock slides as AI cash-burn concerns overshadow revenue growth. Alphabet shares fell sharply in pre-market trading, with Reuters reporting a drop of about 10.2% that would imply more than $400 billion in market value at risk if sustained. The company reported third-quarter revenue of $127.6 billion, up 25%, including Google Cloud revenue growth of 103% to $30.7 billion, but investors focused on search-ad trends and the scale of AI-related spending. Read more
- Microsoft — Cloud strength supports gains after earnings beat. Microsoft shares rose in pre-market trading after the company reported fiscal first-quarter revenue of $92.3 billion, up 19%, and diluted EPS of $4.92. Microsoft Cloud revenue increased 30% to $63.9 billion, while Azure revenue grew 48%, reinforcing investor confidence that the company is translating AI infrastructure spending into cloud growth. Read more
- ServiceNow — Shares plunge after guidance disappoints. ServiceNow dropped about 18.7% in pre-open trading after a mixed third-quarter report and fourth-quarter subscription-revenue guidance of $4.245 billion to $4.255 billion. The company highlighted strong AI demand, including AI net new ACV expectations raised to $1.7 billion, but investors focused on near-term guidance and an adjusted EPS miss. Read more
- Carvana — Record quarter drives pre-market rally. Carvana shares advanced after the online used-car retailer reported record third-quarter revenue of $8.04 billion, up 42% year over year. Retail units sold rose 39% to 217,385, net income reached $483 million, and adjusted EBITDA hit a record $800 million. Read more
- Chipotle Mexican Grill — Traffic recovery signs lift shares. Chipotle gained in pre-market trading after reporting third-quarter comparable restaurant sales growth of 2.1%, above the 1.4% estimate cited by Reuters. Revenue rose 9.6% to $3.3 billion, and management said it expected current-quarter comparable sales to exit around 3% to 4%, though adjusted EPS of $0.27 missed expectations. Read more
- Fortinet — Cybersecurity demand supports guidance raise. Fortinet reported third-quarter revenue of $2.08 billion, up 20%, with product revenue up 37% and billings up 29% to $2.34 billion. The company raised its 2026 revenue outlook and increased its share-repurchase authorization by $1.2 billion, leaving $2.0 billion remaining. Read more
- Eli Lilly — Revenue surges on Mounjaro and Zepbound demand. Eli Lilly reported third-quarter revenue of $24.4 billion, up 39%, driven primarily by Mounjaro and Zepbound. The company raised its full-year 2026 revenue guidance to $91.0 billion to $92.0 billion, while reported EPS rose 16% to $7.22. Read more
- Caterpillar — Industrial demand lifts sales and profit. Caterpillar reported third-quarter sales and revenue of $20.7 billion, up 17% year over year. Profit per share was $7.13, adjusted profit per share was $7.20, and management cited strong order rates and a record backlog, supported by demand across power equipment, turbines and construction machinery. Read more
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