Nasdaq futures sink 800 points as tech earnings miss

Nasdaq 100 futures dropped nearly 800 points on Friday after disappointing quarterly earnings from Alphabet, Amazon and Intel pressured mega-cap technology shares ahead of the opening bell.

Tech earnings strain artificial intelligence valuations

The premarket declines followed quarterly statements from the three technology companies that raised investor concerns over mounting artificial intelligence infrastructure costs relative to near-term returns. S&P 500 contracts slid 1.6%, while Dow Jones Industrial Average futures slipped 0.8% in early trading.

Alphabet and Amazon reported accelerating capital expenditures tied to data-center buildouts alongside revenue figures that trailed aggressive market targets. Intel posted weaker gross margins and lower forward revenue guidance, citing competitive pressure and inventory adjustments across its server and personal computer processor divisions.

The pullback marks a sharp reversal for major index heavyweights that drove equities higher throughout recent months. Market strategists noted that elevated price-to-earnings valuations left broad benchmarks exposed when capital spending expansion outpaced immediate software monetization across enterprise cloud segments.

Trading desks are monitoring cash-market volume through the Oct. 30 session close for signs of institutional stabilization. Labor Department employment figures scheduled for Nov. 6 represent the next major macro catalyst for interest-rate projections and equity valuations.