S&P 500, Nasdaq set for higher open as oil prices extend declines, midterm results awaited
Crude oil prices fall further heading into the US midterm elections as Apple results fail to impress
The S&P 500 and Nasdaq were poised for a higher opening on Tuesday, November 3, as prices of crude oil continued to decline in the run-up to the U.S. midterm elections. Apple Inc. joined a growing list of tech giants whose earnings did not meet investor expectations, with the company's shares falling by 4.4% in premarket trading due to a warning that rising memory chip costs would hurt holiday-quarter gross margins.
Meanwhile, Palantir Technologies had forecasted revenue above expectations for the final quarter, yet its shares still fell 6.1%. The Nasdaq-100 index had dipped over 10% from its all-time high on Monday, signaling a correction in the tech-heavy index. Investors grew cautious about Big Tech's burgeoning AI spending and the lack of substantial returns.
Several tech firms had recently turned to the bond market to fund their AI investments, intensifying worries over potential difficulties in justifying debt-financed spending as borrowing costs rise. However, a dip in oil prices helped bolster risk appetite on Tuesday, with Brent crude falling by 2.4%, following a sharp decline the previous session as markets watched for developments in the U.S.-Iran peace deal.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
