Dow, S&P 500, Nasdaq futures take a breath after tech selloff

Image source: Unsplash

US stock futures struggled on Wednesday following a rough trading session that saw Wall Street equity markets close deep in the red.

Dow Jones Industrial Average futures hovered just above the flat line, while S&P 500 futures dropped 0.1%.

Contracts on the tech-heavy Nasdaq 100 fell 0.2%, as shares of AI chipmaker AMD slid after its earnings beat estimates but nevertheless underwhelmed.

During regular trading on Tuesday, the Nasdaq Composite led a steep stock slide, falling over 2%.

The pullback followed a sharp selloff in tech names, led by Palantir, which fell nearly 8% despite topping third-quarter expectations.

The stock’s lofty valuation has some investors questioning whether the AI-fueled rally has left fundamentals behind.

Fears of an AI-fueled bubble are beginning to mount, spurred by investor Michael Burry's puts against both Palantir and Nvidia.

AMD's underwhelming earnings reveal could add more fuel to that fire.

In Wednesday's earnings lineup, McDonald’s, Qualcomm, Robinhood, and Toyota are among the highlights. Yahoo Finance reports.

📸 Pinterest shares tumble on stiff ad competition, tariff-driven pressures

Pinterest shares sank 18% on Wednesday as its dour forecast fueled fears the image-sharing platform is struggling to find new avenues of growth amid tariff pressures and competition from bigger rivals.

The share slump is set to erase $4.36 billion from the company's market value, if the premarket trading losses hold over the day.

Pinterest's results are in contrast with upbeat third-quarter revenue posted by digital ad bellwethers, including Google-parent Alphabet, Meta, and Reddit, which were driven by robust advertisement spending. Reuters reports.


🍔 McDonald’s is about to report earnings. Here’s what to expect

McDonald’s is expected to report its third-quarter earnings before the bell on Wednesday. Here’s what Wall Street analysts surveyed by LSEG are expecting the company to report:

• Earnings per share: $3.33 expected
• Revenue: $7.1 billion expected

The fast-food giant, often seen as a bellwether for the financial health of consumers, has spent more than a year sounding the alarm about a pullback in spending from low-income diners.

But Wall Street is anticipating that McDonald’s will report same-store sales growth for the second straight quarter, showing that its value strategy is winning over customers. CNBC reports.


🤖 Global chip selloff erases $500 billion in value as fears mount

The global selloff in semiconductor stocks accelerated on concern over lofty valuations for some of the artificial intelligence boom’s biggest winners.

Memory makers Samsung Electronics Co. and SK Hynix Inc. dragged South Korea’s benchmark Kospi down as much as 6.2% Wednesday before it pared much of the loss.

Japan’s Advantest Corp. dropped as much as 10% while Asia’s largest stock Taiwan Semiconductor Manufacturing Co. fell more than 3%. All are suppliers to Nvidia Corp. Yahoo Finance reports.


🚙 Ford, Hyundai report large declines in October EV sales after end of federal credits

Sales of all-electric vehicles collapsed last month following the end of up to $7,500 in federal incentives for purchasing an EV, several automakers said Monday.

Ford Motor, Kia, Hyundai Motor and Toyota Motor reported massive declines in EV sales as many buyers pulled ahead purchases before the credits ended under changes by the Trump administration.

Ford, which ranked third in U.S. EV sales through the third quarter, reported a 25% drop in its year-over-year all-electric October sales.

That included a 12% decline for its Mustang Mach-E crossover and a 17% fall for the F-150 Lightning. CNBC reports.


🍎 Apple to launch low-cost Mac laptop

Apple is working on a low-cost Mac laptop aimed at students and casual users to compete with Google Chromebooks and cheaper Microsoft Windows laptops, Bloomberg reported Tuesday, citing people familiar with the matter.

The new device, code-named J700, is in testing and early production, with a launch planned in H1 next year, the news outlet reported.

Apple will reportedly use iPhone processors and a smaller LCD screen to keep the price below $1,000, Bloomberg said.

The laptop will have a screen slightly smaller than the 13.6-inch MacBook Air and offer better performance than older M1 models despite its mobile chip, the report added. MarketScreener reports.


📊 Palantir's epic run-up gives the market a reason to sell

At valuations so high, solid quarters aren't enough. In fact, even stellar results won't cut it. Just ask Palantir.

The tech giants have been at the mercy of sky-high expectations for years, amplified by the AI bonanza and swelling valuations that demand immaculate earnings to keep afloat.

Palantir, which rose the most of any S&P 500 company last year and has extended an epic run, faces even more pressure.

After posting record-setting results with US revenue that rose 80%, shares fell 7%. Yahoo Finance reports.

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM Eastern Time)
Benzinga reports.

1) APPS: Digital Turbine
Total gain: +22.29%

2) LITE: Lumentum Holdings
Total gain: +15.68%

3) TDC: Teradata
Total gain: +12.55%

4) CDNA: CareDx
Total gain: +12.25%

5) CSIQ: Canadian Solar
Total gain: +11.95%

The closing price of the top three market percent gainers trading near or above $3 on November 4.
Stock Analysis reports.

*All pricing and percent gains are based on regular market trading hours from 9:30am to 4:00pm Eastern Time

1) EVOK: Evoke Pharma, Inc.
Total gain: +132.24%
The company announced it has completed its strategic partnership with Los Angeles-based RIA Evoke Advisors (“Evoke”). As part of this acquisition, MAI is introducing new Managing Partner appointments to help guide the firm’s next chapter of growth and innovation. Businesswire reports.

2) DTCK: Davis Commodities Limited
Total gain: +63.46%
The company announced that it is evaluating the creation of an inter-regional, ESG-tokenized yield corridor built around its Real Yield Token (RYT) ecosystem and certified commodity finance. This corridor concept seeks to digitally align Asia–Africa–Latin America trade routes, bridging capital demand with verified supply chains through programmable finance rails. Globe Newswire reports.

3) CMBM: Cambium Networks Corporation
Total gain: +58.82%
The stock appeared to be moving on no notable news.