Following last week’s steep sell-off of technology stocks, investors are bracing for further market turbulence at the start of this week, as they await several marquee corporate earnings reports and the results of the U.S. midterm elections. Futures on the S&P 500 rose slightly on Sunday night. In Asia, Australian stocks and Japan’s benchmark index fell slightly.
Investors remain concerned about the amount of money technology companies are spending to build the infrastructure to power artificial intelligence. Those concerns have intensified as companies have increasingly turned to debt markets to finance their spending. The average tech company has fallen 3 percent the day after it reported earnings for the three months through September, by far the worst tech performance of any quarter since Jefferies started tracking the data 12 years ago.
Apple and Palantir both report earnings after the stock market closes on Monday. Advanced Micro Devices reports on Tuesday. The Philadelphia Semiconductor Index fell over 15 percent in October and is 27 percent below its record high in June, deep into a bear market. Slowing A.I. growth expectations have helped lower longer-dated interest rates, with the 10-year Treasury yield falling below 5 percent last week.
Source: New York Times Business · Summarized by HeadlinesBriefing