US stock futures fell sharply on Friday, extending a technology-led sell-off as investors digested disappointing earnings from Amazon and Intel that raised fresh questions about the scale of corporate spending on artificial intelligence.
Nasdaq 100 futures sank 2.33%, or 687 points, while S&P 500 contracts lost 1.04%. Dow futures were little changed, up 0.03%, as the losses concentrated in tech names.
Amazon and Intel put AI spending under the microscope
Amazon shares dropped 7.2% in pre-market trading despite a 39% jump in cloud revenue to $46 billion. The company's trailing 12-month free cash flow swung to a $42.4 billion outflow, and it maintained plans for roughly $220 billion in capital spending in 2026.
Intel plunged 25% after reporting weak PC demand, manufacturing constraints, and expected cash burn, overshadowing quarterly revenue growth.
Inflation raises the stakes for Friday's wage report
September's US Personal Consumption Expenditures index rose 3.6% from a year earlier, up from 3.4% in August, while core inflation reached 3.1%. The Federal Reserve held rates at 3.75%–4% on Wednesday, with two policymakers favoring an increase.
Investors now await the third-quarter Employment Cost Index at 8:30 am Eastern, with economists expecting a 0.8% quarterly rise.
Reddit's revenue boom fails to calm traffic fears
Reddit shares plunged 21.1% in pre-market trading after CEO Steve Huffman warned that daily users could fall by a low double-digit percentage in the fourth quarter if search referrals keep declining. Search-engine referrals fell by more than one million a week on average in October, and Huffman blamed Google's AI-generated search answers for the slide. He outlined plans to test requiring sign-ins for most content.
The warning overshadowed third-quarter revenue of $895 million, up 53%, showing how AI threatens some internet business models even while driving investment elsewhere.
Oil climbs as energy earnings come into focus
Brent's expiring December contract rose towards $117 a barrel, while the more active January contract traded nearer $113. A tanker was struck in the Strait of Hormuz, renewing concerns about Gulf shipping. MST Marquee analyst Saul Kavonic said attacks and doubts over diplomacy were supporting prices.
Higher crude prices may bolster energy producers but also threaten to keep inflation elevated and squeeze consumers, complicating the Fed's policy outlook.
Japan's Nikkei fell about 2.1% as chipmakers retreated. The Bank of Japan maintained its policy rate at 1.25%, while leaving the door open to further tightening.
This article is for informational purposes only and does not constitute financial advice.
