AI Earnings Disappoint, Nasdaq Futures Drop 1.55% as Oil Tops $112
IXIC sits 29% above its 52-week low of $20,690.249.
Summary
AI-linked names are selling off globally after a cluster of earnings failed to clear a very high bar. Meta fell 3% premarket despite strong revenue growth because it left the top of its capex guidance unchanged, while Lam Research dropped 8.4% and IBM 6.5%; Tesla slipped 3.7% after unexpectedly reporting lower capital expenditure, feeding worries the AI buildout is slowing. Nasdaq futures are down 1.55%, unwinding Wednesday's relief rally, and South Korea's Kospi closed down 3.5%. Oil is adding pressure: Brent rose 2.9% to about $112 a barrel after renewed attacks on Saudi energy infrastructure, including an intercepted drone at Aramco's Shaybah field. French government bonds sold off hard, with the 10-year OAT yield up 7.6 basis points to 5.077% and the OAT-Bund spread at 164 basis points, the widest since 2011, pushing money into Treasurys and dragging bitcoin below $82,000. Western Digital reports after the close and is the next read on AI-related demand.
At the time of this announcement, IXIC was trading at $26,702.86 on NASDAQ in the Technology sector. The 52-week trading range was $20,690.25 to $27,722.75. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.