Futures steady after the AI selloff, Brent holds above $114, and American Express raises its outlook
Five things to know before the open on Friday, October 23.
Five things to know before the open.
1. Futures steady after Thursday's AI selloff
Nasdaq 100 futures were little changed, S&P 500 futures down about 0.2% and Dow futures down about 0.6% around 7:15 AM ET, suggesting the selloff could find a floor for now. On Thursday the S&P 500 fell 1.2% and the Nasdaq 100 dropped 2.9% in its worst day since June, while the Dow ended flat. Treasury yields rebounded in early trading after investors' rush for safety drove their largest one-day decline in three and a half years. For the close, see our Dusk Ledger, and for the yield move see our Treasury story.
2. Brent holds above $114 as the U.S. sends more forces to the Middle East
Brent crude traded above $114 a barrel, its highest since early May, and U.S. benchmark crude topped $101, as worries grew that the conflict with Iran could soon escalate. The U.S. is sending additional forces to the Middle East, and Iran warned it would strike civilian targets in neighboring countries if the U.S. and Israel restart their air campaign. The Wall Street Journal reported that the U.S. and Israel are weighing fresh strikes on Iran after the November midterm elections. More in our oil story and our Iran story.
3. AI stocks try to find a floor
Several of Thursday's hardest-hit AI names steadied in early trading: Nvidia edged up about 0.4% after falling 4.4%, AMD gained about 1% after dropping more than 8%, and Meta recovered slightly after falling more than 7%. CoreWeave rose about 2% after hitting a fresh 17-month low of $53.50 on Thursday, and SK Hynix climbed about 5% after pulling the planned U.S. listing of its memory-chip unit Solidigm. Nvidia CEO Jensen Huang said in a television interview that "there is a scarcity of capital" for AI infrastructure, with demand for capital "much greater than the availability."
4. Moderna extends its slide; Western Digital slips despite a beat
Moderna reportedly fell about 4% further in early trading after plunging nearly 18% on Thursday, its steepest one-day drop in more than two months. The company shed about $24 billion of market value as early cancer-vaccine data that leaked ahead of a medical meeting triggered a "sell-the-news" retreat, even though the results were positive. Western Digital reportedly fell about 2% despite beating fiscal first-quarter earnings expectations and issuing an upbeat outlook for the current quarter.
5. American Express and SLB top estimates; consumer sentiment due at 10
American Express reported third-quarter earnings of $5.42 a share, up 31% and well above estimates, while revenue of $20.1 billion rose 9% and came in just shy of forecasts; the company raised its 2026 adjusted earnings forecast to $17.60 to $17.90 a share. SLB, the oilfield-services giant, posted adjusted earnings of 64 cents a share on revenue of $9.45 billion, both above estimates, with international revenue up 5% from the prior quarter led by a 13% recovery in the Middle East; its shares rose about 1% in early trading. On today's calendar: the final University of Michigan consumer sentiment reading for October at 10:00 AM ET.
