US Pre-Open: Oil Strength, AI Doubts Keep Futures Lower
US equity futures are lower as rising oil prices and concerns over technology earnings and AI investment weigh on risk appetite. S&P 500 futures are down 0.91%, while Nasdaq futures fall 1.56%.
Nasdaq futures -1.56%Technology earnings and AI spending concerns
S&P 500 futures -0.91%Risk aversion amid elevated oil prices and geopolitical tension
Brent crude +2.79%Middle East escalation and supply concerns
US 10-year yield -2.10%Haven demand for Treasuries
Lead: US equity futures are lower as rising oil and technology-sector doubts weigh on risk appetite. S&P 500 futures are down 0.91%, with Nasdaq futures off 1.56%.
Session narrative: The defensive tone extends from Europe into the US pre-open. Investors are questioning whether heavy AI spending can deliver enough returns, while disappointing outlooks have pressured technology shares.
Cross-asset check: Brent crude is up 2.79% near $112 a barrel. The ten-year yield is down 2.10% as Treasuries attract haven demand; the Dow ETF is up 0.67%. Dollar-yen is lower by 0.62%.
Themes & continuing stories: Middle East tensions and potential supply disruptions remain in focus. Union Pacific reported EPS of $3.49 against a $3.47 estimate and affirmed high-single-digit 2026 EPS growth guidance, while higher fuel prices hurt its operating ratio.
What’s ahead: American Express earnings are scheduled for October 23 at 07:00 ET, with EPS forecast at $4.52 and revenue at $20.09B.