US stock-index futures retreated after Samsung Electronics and Alphabet Inc. earnings disappointed, reviving concerns about the billions of dollars companies are pouring into artificial intelligence. Nasdaq 100 Index futures dropped 0.9% and S&P 500 contracts slipped 0.4% as Samsung's third-quarter earnings missed estimates. Alphabet slumped 10% in extended trading after the Google parent's sales underwhelmed, while MSCI Inc.'s Asia Pacific equities gauge climbed 0.3%, led by Japan's Nikkei 225.
Sentiment elsewhere held up. Microsoft Corp. shares rose 2.8% after hours on solid cloud sales, and Oracle Corp. surged 11% earlier after issuing a long-term outlook for free cash flow. Hugh Lam, a Sydney-based investment strategist at Betashares Capital Ltd., said the divergence between Alphabet and Microsoft highlights growing scrutiny of how big tech funds its data center build-outs.
The Federal Reserve held its benchmark rate in a range of 3.75% to 4% by a 10-2 vote, signaling fewer policy-setting meetings next year. Fed Chairman Kevin Warsh said officials have made clear their readiness to act as circumstances require. Luis Alvarado at Wells Fargo Investment Institute said, "patience should not be confused with complacency." Yields on short-dated Treasuries fell, the dollar slipped, and gold edged up to about $4,065 an ounce.
Global bond sales have hit an all-time high, with $6.61 trillion raised so far this year, up 15% from a year earlier, according to Bloomberg data. Meanwhile, US crude traded around $102 a barrel as renewed tensions with Iran risk pushing oil higher and complicating the inflation outlook.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing