Oct 20 (Reuters) – Nasdaq 100 futures slipped on Tuesday, pressured by renewed weakness in AI-linked stocks and a rebound in oil prices, as investors braced for earnings from major technology companies.
CoreWeave dropped 3.1% and Nebius Group lost 2.9% in premarket trading, while Apple fell 1% and Nvidia slipped marginally.
The declines followed a brief reprieve on Monday, when the S&P 500 and Nasdaq advanced as investors bought back into technology stocks following last week’s sharp selloff, driven in part by concerns over CoreWeave’s debt load and the cost of financing the AI buildout.
“I see this as a dip inside a selective market rather than a genuine AI buying opportunity or the start of a deeper repricing,” said Ion Jauregui, analyst at ActivTrades.
“Investors are pickier about AI stories than they were a year ago.”
Elsewhere, shares of South Korean AI infrastructure company Elice Group tumbled nearly 30% in their market debut, slipping below their IPO price after the company raised 201.1 billion won ($151.12 million) in its offering.
At 05:20 a.m. ET, Dow E-minis were up 115 points, or 0.22%, S&P 500 E-minis were down 6.75 points, or 0.09%, and Nasdaq 100 E-minis were down 147.75 points, or 0.5%.
Brent crude was up 1.7% at around $111 a barrel, near a five-month high, as traders priced in a geopolitical risk premium from Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf. [O/R]
Investors will now watch this week’s corporate earnings for clues on whether technology companies can maintain strong growth in the face of mounting macroeconomic risks.
Quarterly results from SpaceX and Netflix are due after the market close on Tuesday, while heavyweights Meta Platforms and Tesla are scheduled to report on Wednesday.
General Motors, Hasbro, Halliburton, and 3M are among the companies due to report before markets open on Tuesday.
3M shares rose 3.9% after the industrial conglomerate said it was expanding its commercial relationship with Amazon and had issued a warrant to an Amazon subsidiary, allowing it the right to buy 3M common stock worth over $521 million.
Steel Dynamics fell 6.3% after the steelmaker missed third-quarter profit estimates.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shilpi Majumdar)
