U.S. stock futures edged lower late Wednesday as investors reacted to third-quarter earnings from major tech companies like Meta Platforms and Tesla. Dow Jones Industrial Average futures dipped 0.3%, or 170 points, while S&P 500 futures fell 0.5%, and Nasdaq-100 futures dropped 0.7%. Meta's shares rose 2% in extended trading after the company reported higher-than-expected revenue and strong guidance for the current quarter. Tesla, however, saw its shares decline 3% despite beating earnings and revenue estimates.
Analyst Dan Ives of Yorkville Ives noted that Meta's quarter showed its AI investments paying off, with controlled spending that narrowed the range for its full-year data center-related capital expenditures. The day's trading followed a positive session on Wall Street, with the S&P 500 extending its three-day win streak, the Dow jumping 360 points, and the Nasdaq Composite closing 1% higher, boosted by gains in SpaceX and Tesla.
Asia-Pacific markets were poised for a mixed open on Thursday, with concerns over the sustainability of the artificial intelligence boom weighing on investor sentiment. Futures for Japan's Nikkei 225 and Hong Kong's Hang Seng index indicated lower opens, while Australia's S&P/ASX 200 lost 0.56%. Additionally, IBM's stock swung wildly in after-hours trading after the company posted third-quarter results that beat expectations, but shares initially dropped more than 3%. Southwest Airlines also cut its 2026 profit forecast, citing higher fuel prices, and shares fell 0.2% in extended trading.
Other notable after-hours movers included Lam Research, which dropped more than 5% after providing second-quarter guidance that fell slightly below analysts' expectations. Investors will also be watching for economic data, including weekly initial jobless claims set to release Thursday morning.