US stock futures remain slightly lower ahead of the midterm elections, with S&P 500 e-mini futures down around 0.1% for a fourth consecutive session. Apple is down about 3% after issuing weaker margin guidance, while investors continue to reduce exposure to technology stocks ahead of AMD’s earnings report after the close.
3 Takeaways
The S&P 500 fell 0.51% on Monday, the Nasdaq lost 1.07%, while the Dow gained 0.41%.
Apple beat earnings expectations but warned of lower margins in the holiday quarter due to higher memory costs.
Today’s main events are the US midterm elections and AMD earnings after the closing bell.
The S&P 500 ended Monday at 7,541.40, the Nasdaq at 25,164.32, while the Dow rose to 51,983.98.
Technology stocks once again underperformed the broader market. Oracle lost almost 9% after announcing plans to raise $20 billion, Marvell dropped 13% following its deal with Lumentum, while AMD fell 7.5% ahead of today’s earnings report.
Pressure continues on Tuesday. Asian technology markets also posted sharp losses, while S&P 500 futures are down around 0.1% in early trading. The 10-year Treasury yield is holding near 4.91%.
Corporate focus
Apple reported better-than-expected results, with quarterly revenue of $114.48 billion versus the $113.39 billion consensus and earnings of $2.10 per share compared with $1.99 expected.
However, the outlook disappointed investors. Apple expects gross margin of 45–46% in the holiday quarter versus 47.9% in the previous period, citing higher memory costs. Services revenue growth is expected at 8–9%, below analysts’ forecast of around 10.7%. The shares fell following the report.
AMD reports after the market close today. Following the recent semiconductor sell-off, its results will provide another important test of whether demand for AI chips remains strong enough to justify current expectations.
Politics
The midterm elections are the main event today.
Markets expect Democrats to have a strong chance of taking control of the House of Representatives, while the Senate remains much more uncertain. For technology companies, a strong Democratic result could increase expectations for tighter scrutiny of AI development and data-centre expansion.
Technical outlook
The S&P 500 is trading near 7,540 after several weak sessions.
The nearest psychological support is at 7,500. A break below this level would bring the 7,450 area into focus.
Resistance is located around 7,600–7,650. The index needs to recover above this zone for the short-term picture to stabilise.
FAQ
Why are futures falling again?
Investors continue to reduce technology exposure, while Apple’s outlook failed to restore confidence ahead of the midterm elections.
What matters most today?
The election results and AMD earnings after the market close.
What is the main risk?
A further spread of the AI-sector sell-off into the broader equity market.
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