Dow Rises, S&P 500 and Nasdaq Futures Fall as Alphabet Stock Sells Off, AI Jitters Return

Image source: AI-generated with OpenAI

US stock futures diverged in premarket trading on Thursday as Alphabet's Q3 earnings sparked a sell-off in the stock and AI jitters returned to markets, dragging on the tech-heavy indexes.

Futures on the Dow Jones Industrial Average (YM=F) rose 0.3%. Those on the S&P 500 (ES=F) slid 0.4%, while contracts for the Nasdaq-100 (NQ=F) fell 1.3%.

Tech stocks snapped a positive run this week as investors digested the Fed's rate pause on Wednesday and earnings from Microsoft (MSFT) and Alphabet (GOOG, GOOGL). Microsoft beat analyst expectations on the top and bottom lines, while Alphabet's sales came up short. Although Google posted cloud growth of 103%, concerns about its free cash flow and AI return on investment were the albatross of the company's quarter.

A sell-off in AI names spread to Asian markets as South Korea's Kospi (^KS11) index declined. The iShares Semiconductor Index ETF (SOXX) also skidded after hours as Nvidia (NVDA), AMD (AMD), Micron (MU), and other chip stocks fell.

Markets will get another dose of hyperscaler earnings after the bell on Thursday when Amazon (AMZN) reports results. Several other big corporations, including Eli Lilly (LLY), Mastercard (MA), Intel (INTC), Caterpillar (CAT), and Anheuser-Busch InBev (BUD), will also provide insight into the AI trade and other facets of the economy. Yahoo Finance reports.

🔍 ServiceNow Stock Is on Track for Its Largest Drop on Record, but JPMorgan Sees a Bright Spot
Shares in ServiceNow plunged after the software platform reported mixed third-quarter results, with revenue beating expectations while earnings fell short. However, analysts still see the stock rising over time.

The Santa Clara, California-headquartered company's stock (NOW) tumbled nearly 18% in Thursday's premarket trading, falling to $123.21. If sustained throughout the day, this would mark the largest percentage drop on record, according to Dow Jones Market Data. MarketWatch reports.

📰 MediaAlpha Price Target Raised to $13 From $10.50 at Goldman Sachs

Goldman Sachs raised its price target on MediaAlpha (MAX) to $13 from $10.50.

MediaAlpha reported record third-quarter 2026 results, with revenue increasing 23% and adjusted EBITDA rising 36% year over year. The growth was driven by broader insurance carrier spending and strong performance across the auto, home, and agent segments.

The company's fourth-quarter guidance points to continued growth, while management expects sustained double-digit expansion. During its earnings call, Co-Founder and CEO Steve Yi and CFO Tigran Sinanyan discussed the quarterly results and the company's financial outlook for the remainder of 2026. StockAnalysis reports.

👁️ Glaukos Price Target Raised to $240 From $195 at Piper Sandler

Piper Sandler raised its price target on Glaukos Corporation (GKOS) to $240 from $195.

Glaukos held its third-quarter 2026 financial results conference call following the release of its quarterly earnings materials. The company made its earnings press release and quarterly summary available to investors after the market close.

The conference call featured Chairman and CEO Tom Burns, President and COO Joe Gilliam, and CFO Alex Thurman. Management discussed the company's quarterly results and hosted a question-and-answer session with analysts and investors. StockAnalysis reports.

💻 Fortinet’s Stock Is Taking a Dive After Earnings
Fortinet’s earnings report is dealing a blow to investors in cybersecurity stocks.

Shares of Fortinet (FTNT) are set to shed about a quarter of their value based on after-hours trading activity on Wednesday.

Fortinet failed to live up to the high AI-fueled expectations that investors had for the cybersecurity sector, as the company’s product revenue grew significantly more slowly in the latest quarter than it did in the previous one. MarketWatch reports.

🛒 Sprouts Farmers Market Cuts FY26 Outlook as Cyclospora Fallout Lingers
Shares of Sprouts Farmers Market (SFM) were under heavy selling pressure in Wednesday’s after-hours trading after the company reported disappointing third-quarter results and forecast a difficult end to the year, as the challenging consumer environment and cyclospora disruption are expected to reverberate through the remainder of 2026.

Although net sales were up 5% to $2.3 billion, comparable store sales contracted by 0.9%, and earnings declined by a penny per share, all three metrics missed consensus estimates. The company attributed a 0.6% negative impact on comparable store sales to the cyclospora outbreak.

Increased shrink and higher fuel costs also weighed on results, as gross margin contracted by 50 basis points to 38.2%, while EBIT margin declined by 60 basis points to 6.6%. SeekingAlpha reports.

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM ET). Stock Analysis reports.

1) PCLA: PicoCELA Inc.
Total gain: +33.61%

2) NUWE: Nuwellis, Inc.
Total gain: +23.85%

3) PRCH: Porch Group, Inc.
Total gain: +19.63%

4) MESO: Mesoblast Limited
Total gain: +18.67%

5) MAX: MediaAlpha, Inc.
Total gain: +17.83%

The closing price of the top three market percent gainers trading near or above $2 on Oct 28.

(All pricing and percent gains are based on regular market trading hours from 9:30 AM to 4:00 PM ET). Stock Analysis reports.

1) ULBI: Ultralife Corporation
Total gain: +145.44%

The company announced that it has entered into a definitive agreement to acquire Ultralife (NASDAQ:ULBI) for $16.00 per share in cash, representing a 166% premium to Ultralife’s unaffected closing share price on October 26, 2026. The transaction represents an enterprise value of approximately $320 million. EnerSys expects to realize $15 million to $20 million in annual run-rate cost synergies within the first 18 months, reflecting the unique benefits of combining Ultralife with EnerSys. BusinessWire reports.

2) AIOK: AI OKTO CORP.
Total gain: +109.69%

The stock appeared to be moving on no notable news.

3) FTFT: Future FinTech Group Inc.
Total gain: +55.38%

The company announces that KSF has commenced an investigation into Future FinTech Group Inc. (“FinTech”) (NasdaqCM: FTFT). According to a securities class action complaint filed against the Company, between January 2020 and January 2021, Future FinTech’s CEO, Shanchun Huang, allegedly bought large volumes of the Company’s stock at escalating prices to artificially raise its share price above Nasdaq’s $1.00 minimum bid requirement and avoid delisting, without disclosing his ownership or trades as federal securities laws require. BusinessWire reports.

(Estimate and Actual numbers represent Earnings Per Share in US Dollars)

YPF

YPF

Q3 2026

Before Market Open

Estimate: 1.990

Actual: 0.300

POR

Portland Gen Electric

Q3 2026

Before Market Open

Estimate: 1.110

Actual: 1.060

FJTSY

Fujitsu

Q3 2026

Before Market Open

Estimate: 0.220

Actual: 0.166

Time (ET) / Report / Period

• 8:30 AM / Advance estimate GDP / 3Q
• 8:30 AM / Weekly Jobless Claims / Oct. 24
• 8:30 AM / Personal Income, M/M% / Sep

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