U.S. stock futures slip as Tesla and Meta earnings test AI valuations
U.S. stock futures fell Wednesday evening as investors weighed quarterly results from Tesla and Meta, with attention focused on whether heavy AI spending justifies high technology sector valuations. S&P 500 futures dropped 0.4%, while Nasdaq 100 futures slipped 0.7%. Tesla shares fell over 3% in extended trading despite beating earnings and revenue estimates, as heavy investment in AI and robotaxis weighed on profitability. Meta shares rose over 2% after reporting stronger-than-expected revenue and a positive outlook, supported by advertising growth. Earlier Wednesday, U.S. equities gained support from strong results from SpaceX and Super Micro Computer, with the NASDAQ Composite rising 1.1%. Investors also monitored elevated oil prices above $110 a barrel and interest-rate risks ahead of the Federal Reserve's meeting next week.