US stock futures pointed higher on Wednesday, with Nasdaq 100 futures climbing about 160 points, or 0.6%, as stronger results from AI-focused companies helped calm nerves following a sharp selloff in technology shares. S&P 500 futures added 0.19%, while Dow futures were little changed.
Investors found relief in upbeat reports from SpaceX and Super Micro Computer. SpaceX reported quarterly revenue of $14.6 billion, up 161% year over year, with net profit of $4.4 billion, driven by its AI computing business and Starlink. Super Micro Computer raised its preliminary quarterly revenue forecast to $18.5 billion–$19.5 billion from $14.5 billion–$15.5 billion, citing stronger demand for AI platforms. The company also improved its gross-margin outlook, lifting semiconductor shares in premarket trading.
Dan Niles of Niles Investment Management argued that these results could trigger a near-term AI rally, despite lingering concerns about financing for AI infrastructure. The positive news helped offset some of the pessimism that had weighed on the sector in recent sessions.
Meta and Tesla Face Crucial Earnings Test
Meta and Tesla are set to report earnings after Wednesday's close, alongside IBM and semiconductor-equipment maker Lam Research. Analysts expect Meta revenue of about $63.3 billion, with attention focused on whether heavy AI spending is translating into better advertising returns. Tesla faces questions about vehicle margins, its robotaxi ambitions, and the Optimus humanoid robot programme.
Morgan Stanley analyst Brian Nowak cautioned that consumer adoption of new AI services takes time. After the sector's selloff, both companies must demonstrate how their spending converts into sustainable profits.
Netflix Tumbles 6% on Advertising Outlook
Netflix shares fell roughly 6% before the bell after the streamer lowered its 2026 advertising revenue projection to $2.7 billion from about $3 billion. Quarterly revenue rose 12% to $12.87 billion, and earnings of 87 cents per share beat estimates. Management attributed the revised advertising outlook to slower deployment of advertising products. Fourth-quarter revenue guidance of about $13.4 billion also fell short of expectations.
The reaction suggests investors are increasingly unwilling to overlook weaker forward guidance, even when quarterly profits exceed forecasts.
Oil Climbs Above $110 on Supply Risks
Brent crude rose about 1.5% to $110.38 a barrel in Asian trading as threats to Middle Eastern shipping overshadowed hopes of renewed diplomacy with Iran. Industry estimates also showed US crude inventories falling by 4.9 million barrels last week, although official figures remain pending. Higher fuel prices threaten to keep inflation elevated and complicate the Federal Reserve's interest-rate outlook.
US Pending Home Sales Plunge to Record Low
US pending home sales fell 7.3% in September, against forecasts for a 0.5% decline. The National Association of Realtors reported that its index dropped to 66, the lowest since records began in 2001. Housing starts also declined 5.2% to an annualised 1.221 million units. NAR chief economist Lawrence Yun attributed the weakness to rapidly rising mortgage rates, with the 30-year rate recently averaging 7.4%.
The housing downturn provides a counterpoint to upbeat technology earnings: higher financing costs are already weighing on household demand.
This article is for informational purposes only and does not constitute financial advice.
