Apple shares dip as U.S. stock futures hold steady

U.S. stock index futures remain steady

By 8:50 a.m. ET on Monday, Dow E-mins were up 307 points, or 0.59%, while S&P 500 E-mins rose 37 points, or 0.49%, and Nasdaq 100 E-mins gained 245.75 points, or 0.86%. By 18:57 ET, S&P 500 futures stood at 7,585.50 points, Nasdaq 100 futures reached 28,208.50 points, and Dow Jones futures hit 52,166.0 points.

Market skepticism grows regarding AI investment sustainability

Investors remain cautious about the sustainability of artificial intelligence investments as market skepticism grows.

Artificial intelligence startup Anthropic pressured tech valuations after reporting a sharp deterioration in third-quarter revenue growth, which raised questions regarding AI profitability. Sebastian Raedler of Bank of America said he expects the Eurozone PMI to decline further, which will negatively impact the Stoxx Europe 600. Raedler also expressed caution that AI capital expenditure cycles may disappoint market expectations.

Simon Wiersma of ING said the recent market rebound is relatively modest compared to the sell-off last Friday.

They believe the current situation is a typical market correction, similar to two previous pullbacks seen earlier in 2026.

Corporate earnings and sector performance updates

Estée Lauder shares rose 3.5% after the company reported first-quarter fiscal results that exceeded analyst expectations. The company also increased its full-year profit guidance.

Alstom shares fell 27% after the company announced a comprehensive restructuring plan and lowered its full-year earnings guidance. Palantir Technologies shares fell 3.1% in aftermarket trade as its third-quarter earnings failed to meet market expectations.

Palo Alto Networks stock rose 2% amid positive sentiment in the cybersecurity sector. The memory chip sector also rose as capital flowed back into AI-related assets, with Micron, SanDisk, and Western Digital each increasing approximately 2%.

Electric vehicle company Livian saw its stock rise 3.8% after an upgrade from UBS. Analyst Joseph Spark said the recent decline in the stock offers a buying opportunity before the R2 mid-size SUV production ramp-up reaches a turning point.

Geopolitical tensions and macroeconomic pressures

Brent crude prices fell 5.9% to $106.76 a barrel, Reuters reported. Another report indicated a decline of more than 4% to near $108 per barrel as U.S. President Donald Trump seeks more time for diplomatic negotiations with Iran.

Gold prices hover around $3,900. Tzabouras noted this created conditions for a gold rebound, though he said the rally may prove difficult to sustain.

Long-term U.S. Treasury bond prices rose in anticipation of upcoming U.S. midterm elections and employment data releases. In foreign exchange markets, the U.S. dollar declined 0.2%, the euro rose 0.37% to 1.1199, and the USD/JPY remained nearly flat at 157.72.

Saravelos noted evidence of a positive correlation between the dollar and stocks when market shocks originate within the United States.

Upcoming economic data and policy events

U.S. midterm elections occur on Tuesday, November 3, 2026.

Morgan Stanley analyst Mike Wilson projects the S&P 500 could decline approximately 9% from its all-time high to 7,100 due to midterm elections, AI investment pressure, and liquidity constraints. Wilson expects the index to eventually rise to 8,000.

Goldman Sachs analysts expect hyperscale cloud capital expenditures to reach $800 billion in 2026 and $1.2 trillion by 2027.

Kioxia Holdings shares dropped after the company issued a cautious earnings outlook, highlighting persistent market concerns regarding the AI industry.

Key economic data releases scheduled for this week include the U.S. ISM Manufacturing Survey for October and the U.S. Non-Farm Payrolls report on Friday.