Shares steady as Apple earnings near, oil eases

Asian share markets remained steady on Monday, as investors awaited Apple's earnings report to alleviate concerns over AI-related cash burn, and oil prices declined after ongoing negotiations between Iranian and Qatari mediators. Apple's shares have risen consecutively for four months, pushing the tech giant ahead of Nvidia as the world's most valuable listed company.

Analysts forecast Apple to generate $2 in earnings per share (EPS) on revenue of $113 billion, a notable increase from $1.85 in the same period last year. The optimism surrounding Apple's earnings contributed to a 0.4% rise in S&P 500 futures and an 0.8% increase in Nasdaq futures. The tech-heavy Nasdaq suffered its worst monthly decline since April 2025, with losses of nearly 7% in October.

Apple's strong earnings have helped it challenge Nvidia's position as the world's most valuable company. Analysts at Goldman Sachs anticipate hyperscalers' capital expenditure (capex) to nearly double to $800 billion this year, rising further to $1.2 trillion in 2027. Nevertheless, they foresee S&P 500 EPS growth of nearly 30% in 2026, gradually slowing to 18% the following year.

The earnings results have demonstrated the fundamental challenge facing equity investors: strong earnings growth, yet a lack of acceleration.