Wall Street futures dip after AI rout, telecoms slide

Oct 23 : Wall Street futures ticked lower on Friday as caution prevailed after a sharp selloff in AI-linked stocks over concerns about the sector's massive funding requirements, while telecom shares slid on fears of increased competition from SpaceX.

AT&T, Verizon and T-Mobile were down over 3 per cent in premarket trading after a report said SpaceX was in talks with cellular infrastructure companies about launching a nationwide wireless carrier program. US cell tower operators, however, gained from this news, with Crown Castle up 8.5 per cent and American Tower up 5.6 per cent.

SpaceX shares gained 2.2 per cent.

AI-related shares swung sharply this week, first coming under pressure over CoreWeave's debt burden and the cost of financing AI investment, then rallying on Wednesday after upbeat results from SpaceX and Super Micro.

The gains reversed on Thursday and the tech-heavy Nasdaq fell nearly 3 per cent. The slide accelerated following Meta's nearly 8 per cent decline after the Facebook parent reported its first cash outflow in more than a decade amid concerns over its AI-related expenditures.

In premarket trading on Friday, CoreWeave rose 2 per cent, while 'Magnificent 7' stocks were mixed, with up 0.7 per cent and Microsoft down 0.6 per cent.

At 06:09 a.m. ET, Dow E-minis were down 308 points, or 0.58 per cent, and S&P 500 E-minis were down 15.5 points, or 0.2 per cent. Nasdaq 100 E-minis were down 0.75 points, or flat.

Brent crude held near a more than five-month high amid Middle East supply concerns, adding to inflation worries ahead of the Federal Reserve's policy meeting next week.

Nasdaq was on track for a weekly loss, while the benchmark S&P 500 and the blue-chip Dow remained higher for the week, supported by gains in defensive sectors as investors sought refuge from the volatility in technology stocks.

Market focus remains on the earnings season. American Express and SLB, among others, are set to report later in the day.

S&P 500's third-quarter profit growth is now forecast at 32.3 per cent, up from 30.7 per cent previously, according to LSEG data.

In other premarket moves, gold miner Newmont fell 1.5 per cent after reporting quarterly results and warning that unit costs are expected to trend higher in 2027.

Bloom Energy rose 1.7 per cent after the energy firm raised its fiscal 2026 forecast.