Stock futures took a hit on Tuesday. Investors were reacting to Apple's latest earnings report and keeping a close eye on the upcoming U. S. midterm elections. The S&P 500 futures slipped by 0.14%, while the Dow Jones Industrial Average futures saw a more noticeable drop of 0.46%. Meanwhile, Nasdaq-100 futures hovered just below the flatline, indicating the ongoing pressure on global technology stocks.
Apple's shares took a 2% dip in extended trading. The tech giant had issued a less-than-stellar margin forecast and reported iPad sales that fell short of expectations for the fiscal fourth quarter. In the regular U. S. session, the tech-heavy Nasdaq Composite fell by 1.07%, and the S&P 500 decreased by 0.51% as investors continued to pull back from tech stocks. However, the Dow bucked the trend, gaining around 214 points, or 0.41%.
In corporate news, Marvell Technology shares nosedived by 12%, and Lumentum saw an even steeper drop of 18% after Marvell announced it would acquire Lumentum in a $115 billion deal. Oracle shares also took an 8% hit after the company said it plans to sell $10 billion in common stock and $10 billion in bonds to help finance its artificial intelligence build-out.
With the U. S. midterm elections on the horizon, investors are keenly watching the potential outcomes. Prediction markets are giving a 75% chance of Democrats taking control of the Senate. A Democratic sweep of both the House and Senate could lead to a sell-off in artificial intelligence stocks, according to JPMorgan. Even with President Donald Trump in office, a Democratic victory in either chamber could steer investigations and oversight in Washington, affecting sectors such as defense, artificial intelligence, and healthcare.
Market strategist Ryan Detrick from Carson Group noted the anxiety in the air before the elections but pointed out that markets often stabilize once results are in. However, he warned that a significant victory by either party might unsettle stocks due to potential policy shifts.
Tuesday is shaping up to be a busy day for investors, with several major companies including Pfizer, Shopify, Eaton, and Marathon Petroleum set to release earnings before the market opens. Later, Advanced Micro Devices and Super Micro Computer will report their results. Traders are also on the lookout for the Job Openings and Labor Turnover Survey for September and factory orders data.
Across Asia, markets mostly declined on Tuesday, led by tech losses in South Korea and Taiwan. The Kospi fell 3.59% to 5,648.79, while the Taiwan Weighted Index also dropped 3.59%, closing at 43,307.54. Mainland China's CSI 300 ended 0.2% lower at 4,008.87. On the other hand, Australia's S&P/ASX 200 rose 0.34% to 8,886.8, and Hong Kong's Hang Seng Index was up 0.37% in its final hour of trade. Japan's markets were closed for a public holiday.
Europe wasn't spared from the global tech sell-off, with semiconductor stocks taking a hit. ASML shares fell 3.4%, ASMI dropped 2.1%, STMicroelectronics lost 3.9%, and Infineon Tech was down 3.9%. The regional Stoxx 600 index opened 0.62% lower, with technology and mining stocks leading the decline. However, food and beverage and healthcare stocks provided some relief, each rising around 0.3%.
In other developments, Germany's Schaeffler announced plans to cut 3,460 jobs and close five sites across Europe to tackle overcapacity and high costs. The company expects one-off costs of 480 million euros but anticipates an annual earnings boost of 400 million euros by 2030.
Meanwhile, Australia's central bank raised its benchmark cash rate by 25 basis points to 4.85%, the highest since November 2008, in its fight against rising inflation. The consumer price index increased to 4.3% in September, and inflation is expected to stay elevated through much of 2027.
In a separate development, North Korea rejected U. S. allegations linking it to a Binance hack, calling the accusation a "grave political provocation." The FBI had attributed the attack to the North Korea-linked hacking group TraderTraitor.
