Amazon and Intel earnings cause Nasdaq‑100 futures to drop 1.7%

Amazon and Intel earnings send Nasdaq‑100 futures tumbling 1.7%

After Thursday’s earnings releases, Nasdaq‑100 futures slid 1.7% in late‑afternoon trade, a sharp drop that echoed the fall in the tech heavy‑weight index on the day. The decline followed Amazon’s 6% slide in extended trading and Intel’s 21% plunge after the chipmaker issued a weak outlook for the coming quarter. The move left the S&P 500 futures in the 0.7% range and pushed Dow futures down by 13 points, underscoring the sensitivity of U.S. Equity markets to earnings surprises from the technology sector.

The earnings releases came amid a broader sell‑off in the technology sector. Alphabet’s shares dropped 12% after missing on revenue and earnings, dragging the Nasdaq Composite into a 1.4% loss for the session. In Asia, Japan’s Nikkei 225 slipped 2.61% and Australia’s benchmark S&P/ASX 200 edged up 0.65%, reflecting a mixed global reaction to the U.S. Data.

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Amazon’s third‑quarter results showed revenue of $201.94 billion and earnings per share of $1.89, below the $1.96 and $202.31 billion forecasts from LSEG analysts. The company also reaffirmed its 2026 capital‑expenditure guidance of $220 billion, while reporting negative free cash flow of $42.4 billion. The combination of a revenue miss and a cash‑flow shortfall was enough to trigger a 6% decline in the stock during extended trading and a broader sell‑off in the Nasdaq‑100 futures.

Intel’s performance was even more dramatic. After reporting a 5% decline in revenue for its client computing and physical artificial‑intelligence group to $8.1 billion, the chipmaker issued a quarterly guidance that projected adjusted earnings of 25 cents per share on revenue of $15 billion to $16 billion. Analysts had been looking for 43 cents per share on $17.1 billion in revenue. The weak outlook, coupled with the company’s warning of a slowdown in PCs, led to a 21% drop in Intel’s shares and a corresponding hit to Nasdaq‑100 futures.

While the tech heavy‑weights were the main focus, the market reaction was not confined to the United States. In Asia, Japan’s Nikkei 225 and Topix slipped 2.61% and 1.33% respectively, while South Korea’s Kospi and Kosdaq fell over 5% and 3.72% combined. The Australian S&P/ASX 200, however, managed a modest gain of 0.65%, buoyed by energy shares such as Santos and Woodside amid a slight dip in crude prices.

Beyond the earnings releases, the tech‑sector volatility has been amplified by concerns over capital‑expenditure forecasts from hyperscalers and debt levels of neoclouds. Alphabet and Microsoft have not raised their capital‑expenditure guidance, while companies such as CoreWeave and Nebius have seen bond yields rise sharply. The Roundhill Memory ETF (DRAM) and the iShares A.I. Innovation and Tech Active ETF (BAI) have declined 14% and 10% respectively over October, reflecting a broader pullback in AI‑related stocks.

In the cryptocurrency space, Bitcoin fell below $78,000 as a potential security breach at Binance rattled sentiment, prompting several major crypto firms to freeze billions of dollars in linked funds. Ether and Binance’s native token BNB also slipped, while the HYPE token from Hyperliquid surged 9.7% in a quiet rally. The broader tech sell‑off spilled into Asian technology stocks, with Japan’s SoftBank Group down 4.66% and South Korea’s SK Hynix falling 6.36%.

What to Watch Next

• Upcoming earnings from other U.S. Tech firms, particularly those in the AI and cloud space.
• Oil price movements that could influence the Australian market, especially energy‑focused shares such as Santos and Woodside.
• Developments in cryptocurrency security and the response of major exchanges to the Binance incident.

Analysts suggest that the Nasdaq‑100 futures may remain pressured until the next wave of earnings releases. The current market environment, described by Cnbc as “rocky for the AI trade,” indicates that investors are closely monitoring spending levels around AI datacenter build‑outs. The AI‑related ETFs are also under pressure, with the iShares A.I. Innovation and Tech Active ETF down 10% and the Roundhill Memory ETF falling 14% over the month.

For investors monitoring the Australian market, the ASX 200 is expected to open slightly higher after a modest gain on Thursday. Energy shares remain a focal point, with oil prices hovering near the $100‑barrel mark. The Australian share market is likely to remain resilient despite the U.S. Downturn, as highlighted by The Motley Fool Australia.

In sum, the Nasdaq‑100 futures’ 1.7% slide underscores the weight of earnings surprises from Amazon and Intel, while the broader tech landscape remains volatile. Investors will be keeping a close eye on the next round of earnings and the evolving narrative around AI spending and cryptocurrency security.