US stock futures rise, poised to end a two-day losing streak, as oil prices fall and the latest updates on artificial-intelligence spending helped ease investor concerns.
S&P 500 futures rose 0.4%, while Nasdaq 100 contracts advanced 0.9% as of 7:55 a.m. An exchange-traded fund tracking chipmakers gained more than 1% in premarket trading, after the main benchmark tumbled 3.6% on Thursday.
A report that OpenAI expects · to reach or exceed $70 billion in annualized revenue by year-end helped alleviate anxiety over the durability of the AI boom after an earlier report suggested the company’s sales would fall short of expectations. Others on Wall Street are pushing back on the narrative that the market is witnessing an AI bubble.
“People are worried, and that’s not a sign of a bubble,” Christian Mueller-Glissman, a Goldman Sachs strategist, said in an interview with Bloomberg Television. “Usually, when you’re in the bubble, there’s a lot of exuberance, and people have FOMO.”
He also pointed to the J-curve dynamic of technology investment, in which substantial upfront capital spending can take time to translate into revenue growth and productivity gains.
Still, signs of strain emerged across the AI-infrastructure trade. Nvidia Corp.-backed Firmus Grid Ltd. shelved · plans for an Australian initial public offering just days after signaling strong demand for a deal that would have valued the data center company at $30 billion. Credit-default swap spreads on Oracle Corp. reached new highs, as Morgan Stanley warned that project delays could weigh on the company’s debt.
Banks will kick off earnings season in earnest next week. The sector has underperformed the S&P 500 by 11% over the past month. Investors rushed into cash in the week through Oct. 7, sending money-market fund inflows to their highest level since April 2020 and reversing withdrawals from the previous week, according to Bank of America Corp. strategists.
In corporate news, Delta Air Lines Inc. cut its adjusted earnings per share forecast for the full year and shares dropped in premarket trading. Apple Inc. shares fell about 2% on a report that the company cut component orders for the iPhone 18 Pro and iPhone 18 Pro Max amid weaker-than-expected demand. SpaceX shares are poised to open higher after Elon Musk’s rocket and AI company said it acquired low-band spectrum that will enable it to use its Starlink satellites to become a “major mobile carrier” in the US.
Sectors to watch
- Shares in optical-equipment makers rally after Lumentum notes that its components are “completely sold out” through early 2029 on demand from tech companies clamoring for faster AI data centers.
- Watch health insurers after Humana Inc. shares surged on the company’s improved performance on crucial Medicare Advantage quality ratings. Shares of CVS Health Corp. fell as ratings for some of its largest plans deteriorated.
- Shares in tower companies gained on SpaceX’s plan to acquire a nationwide low-band spectrum license portfolio, a deal analysts said is a positive catalyst for the sector.