U. S. equity futures stumbled early Thursday, with investors digesting third-quarter earnings from tech giants like Meta Platforms and Tesla. The S&P 500 futures slid 1.02%, while the Nasdaq-100 futures took a more significant hit, falling 1.8%. The Dow Jones Industrial Average futures also dropped, down by 0.66%.
Across the globe, markets felt the heat as oil prices rose and investors pored over a raft of earnings reports. Shares of Meta ticked up 0.74% in premarket trading. This came after the company outperformed revenue expectations and projected strong guidance for the next quarter. But Tesla's shares told a different story. Despite posting a better-than-expected top and bottom line for the third quarter, its shares fell 4.59% in premarket trading.
Earlier, Wall Street enjoyed a positive run. The S&P 500 extended its winning streak to three days. The Dow surged by 360 points, and the Nasdaq Composite climbed 1%, bolstered by Tesla and SpaceX. SpaceX's stellar quarterly results invigorated investor enthusiasm for artificial intelligence, lifting shares of companies like Micron Technology and Advanced Micro Devices.
In other tech news, Super Micro Computer lifted its fiscal first-quarter revenue outlook, adding to the tech sector's momentum. Meanwhile, Nvidia revealed plans to boost its global manufacturing capacity to meet the surging demand for its AI factory platform.
Looking ahead, investors are eagerly awaiting earnings reports from several big names, including Procter & Gamble, Lockheed Martin, Valero Energy, and Honeywell. The economic calendar also features the release of weekly initial jobless claims.
European markets mirrored the downturn seen in the U. S. The Stoxx 600 index fell 1% in morning trading, with France's CAC 40 index down 1.34%. In Asia, South Korea's Kospi dropped more than 1%, Japan's Nikkei 225 declined 0.73%, and Hong Kong's Hang Seng Index fell over 2%.
In the luxury sector, Hermès saw its shares drop after reporting a decline in demand from Chinese consumers. The French brand's third-quarter revenue rose 4.3% to 4.1 billion euros ($4.6 billion), but sales in its ready-to-wear and accessories division, as well as watches, fell. Chief Financial Officer Eric du Halgouet pointed to reduced foot traffic as the cause, which the company offset with higher value sales.
Asian stocks were hit hard by a tech sell-off. The MSCI All Country Asia Pacific ex-Japan Index dropped over 2%, reaching its lowest level in nearly three months. Japan's Nikkei 225 reversed earlier gains to fall 0.73%, while South Korea's Kospi and Kosdaq both faced significant declines. China's CSI 300 index and Hong Kong's Hang Seng Index also suffered losses.
In Europe, French borrowing costs hit a new 24-year high, with the yield on the 10-year OAT rising nearly 6 basis points to 5.0514%. This happened amid mass protests and concerns over the country's ability to implement budget reforms. The CAC 40 index fell 1.33% in early trading, with Hermès shares dropping after missing analyst expectations for third-quarter revenues.
Elsewhere, Nestlé CEO Philipp Navratil highlighted challenges in the U. S. market due to budget-conscious consumers. Despite strong global third-quarter results, Navratil noted that U. S. shoppers are seeking value, prompting the company to adjust its pricing strategy.
In the defense sector, Thales raised its full-year outlook amid a significant rearmament push in Europe. The company reported an 8.7% year-on-year increase in organic sales for the third quarter, driven by strong demand for its defense products.
Finally, Barclays reported a 12% year-on-year increase in third-quarter pre-tax profit, in line with forecasts. The bank's group income was slightly below analyst expectations.
