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Stock futures open after $5 trillion AI selloff; earnings may slow
Shares of the largest AI and chip companies have lost about $5 trillion in market value since October 6, according to Yahoo Finance calculations. Friday's technology selloff alone erased more than $1 trillion, with the Nasdaq 100 index down 3.4% and the S&P 500 down 1.8%. Investors are increasingly buying put options and credit-default swaps to protect their gains as fears of a possible downturn grow. Borrowing costs for major data center and chip projects have risen, and the cost of insuring against debt defaults by Amazon, Alphabet, Microsoft, Meta and Oracle reached its highest level since 2021. Even so, AI companies continue pursuing billions of dollars in funding to build infrastructure. Stock futures opened higher Sunday, while the S&P 500 slipped about 0.6% last week even as nine of its 11 sectors rose. Apple reports earnings Monday, voters go to the polls Tuesday, and the October jobs report is due Friday.
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Stock futures open after $5 trillion AI selloff; earnings may slow
Shares of the largest AI and chip companies have lost about $5 trillion in market value since October 6, according to Yahoo Finance calculations. Friday's technology selloff alone erased more than $1 trillion, with the Nasdaq 100 index down 3.4% and the S&P 500 down 1.8%. Investors are increasingly buying put options and credit-default swaps to protect their gains as fears of a possible downturn grow. Borrowing costs for major data center and chip projects have risen, and the cost of insuring against debt defaults by Amazon, Alphabet, Microsoft, Meta and Oracle reached its highest level since 2021. Even so, AI companies continue pursuing billions of dollars in funding to build infrastructure. Stock futures opened higher Sunday, while the S&P 500 slipped about 0.6% last week even as nine of its 11 sectors rose. Apple reports earnings Monday, voters go to the polls Tuesday, and the October jobs report is due Friday.