Market Update: Tech Stock Performance Influences Futures
As trading progressed on the morning of October 14, 2026, futures for major indices faced downward momentum, primarily influenced by the financial results of significant tech companies, including Amazon and Intel.
Futures Movement
- Nasdaq-100 futures: Dropped by 2%
- S&P 500 futures: Decreased by 0.9%
- Dow futures: Remained steady without any significant change
Company Earnings Reports
Amazon’s performance was a standout concern, with shares declining by 6% in after-hours trading. The company reported third-quarter earnings and revenue that fell short of Wall Street’s expectations. Notably, Amazon announced a negative free cash flow of $42.4 billion while maintaining its capital expenditure forecast of $220 billion for 2026.
Intel, on the other hand, witnessed a steep 21% decline in its stock price following its underwhelming quarterly outlook, largely attributed to a slowdown in personal computer sales. The company’s revenue from its client computing and physical artificial intelligence sectors saw a 5% decrease, totaling $8.1 billion compared to the previous year.
Additional Market Reactions
Further impacting the market, Sandisk experienced a 3% dip in after-hours trading despite exceeding fiscal first-quarter earnings estimates. The data storage company also announced an eight-for-one forward stock split.
Broader Market Trends
The scrutiny of investments in artificial intelligence (AI) has intensified, particularly following Alphabet’s financial performance. Alphabet shares plummeted 12% after announcing earnings that did not meet expectations, compounded by a negative free cash flow of $9.07 billion. This performance adversely affected the Nasdaq Composite, which closed down by 1.4%, while S&P 500 showed a minor decline of 0.3% during Thursday’s regular trading session.
As October draws to a close, the market’s fluctuation within the AI sector has caused concern, especially regarding spending on infrastructure. Both Alphabet and Microsoft have maintained their forecasts for capital expenditures, indicating caution among major players in the sector.
Investor Concerns in AI
Investor focus is also shifting towards neoclouds—the companies responsible for cloud infrastructure supporting AI datacenters. CoreWeave has attracted scrutiny due to rising bond yields, with shares plummeting by 30% this month. Similarly, Nebius experiences a decline of approximately 27% in October.
Regarding AI memory investments, the Roundhill Memory ETF (DRAM), composed of companies like Micron and Seagate Technology, has fallen by 14% this month. The iShares A.I. Innovation and Tech Active ETF (BAI) also sees a decline of 10%.
Global Market Performance
As trading approached the final day of October 2026, the Nasdaq Composite was expected to experience a 2.5% decline while the S&P 500 was on track for a modest increase of 0.9%, and the Dow aiming for a 2.8% gain.
Internationally, Asian markets reflected similar downward trends on Friday, with Japan’s Nikkei 225 decreasing by 2.12%. South Korea’s Kospi faced a 3.48% decline, whereas Australia’s S&P/ASX 200 saw a slight uptick of 0.18%. Meanwhile, mainland China’s CSI 300 ended the day down by 1.39%.
The market’s volatility underscores the challenges faced in the tech sector, particularly in the wake of disappointing earnings reports and heightened investor scrutiny regarding the sustainable growth of AI and its infrastructure requirements.
