US stock futures dropped sharply on Friday as Amazon and Intel earnings deepened a technology sell-off ahead of Wall Street’s opening bell.
Nasdaq 100 futures sank 2.33%, or 687 points. S&P 500 contracts lost 1.04%, while Dow futures were little changed, up 0.03%.
The declines followed a bruising session for Alphabet and reflected growing unease over how much technology companies are spending on artificial intelligence.
5 things to know before Wall Street opens
1. Amazon and Intel put AI spending under the microscope
Amazon shares fell 7.2% in pre-market trading despite a 39% jump in cloud revenue to $46 billion.
Its trailing 12-month free cash flow swung to a $42.4 billion outflow, while the company maintained plans for about $220 billion in 2026 capital spending.
Intel plunged 25% as weak PC demand, manufacturing constraints and expected cash burn overshadowed quarterly revenue growth.
2. Inflation raises the stakes for Friday’s wage report
September’s US Personal Consumption Expenditures index climbed 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 favouring an increase.
Investors now await the third-quarter Employment Cost Index at 8:30 am Eastern, with economists expecting a 0.8% quarterly rise.
3. Reddit’s revenue boom fails to calm traffic fears
Shares plunged 21.1% in pre-market trading after chief executive Steve Huffman warned 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. Huffman blamed Google’s AI-generated search answers for the slide and 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.
4.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.
5.Asian technology stocks slide as Japan holds rates
South Korea’s KOSPI closed down 3.48% after losing more than 5% intraday. Samsung Electronics shed about 3%, while SK Hynix dropped about 7%, reflecting concerns about the returns on American AI infrastructure spending.
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.
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