North American Morning Briefing: Stock Futures Waver Amid AI Concerns
Stock futures struggled for direction Thursday as investors remained uneasy over soaring valuations in artificial intelligence. Earlier in the week, jitters around the AI sector and doubts about Supreme Court rulings on President Trump's tariffs unsettled the market.
Focus Returns to Corporate Health
Attention is shifting back to corporate performance, especially with a slew of upcoming earnings reports. Investors are also awaiting news on whether Tesla shareholders approved Elon Musk’s substantial compensation package.
Economic Uncertainty and Central Banks
First Abu Dhabi Bank noted that government shutdown uncertainty may strengthen the case for the Federal Reserve to pause interest-rate increases in December. Across the Atlantic, the Bank of England is mostly expected to keep rates steady, although some analysts anticipate a 25 basis-point cut.
Market Movers and Company Updates
- ArcelorMittal expressed optimism that government support will help its industry next year, leading to a 5% jump in shares traded in the Netherlands.
- AppLovin reported quarterly earnings that beat expectations.
- Duolingo’s shares dropped 20% in premarket trading after disappointing financial guidance.
- Nissan posted its fifth consecutive quarterly loss, partly due to challenges in the U.S.
- Pfizer is preparing to increase its offer for Metsera, a weight-loss startup attracting competing bids from Novo Nordisk.
- Metsera’s shares rose 8% premarket, while Novo Nordisk’s shares rallied 3% in Denmark.
“The uncertainty created by the government shutdown could help to reinforce the case for the Federal Reserve to push the pause button on interest-rate cuts in December,” First Abu Dhabi Bank said.
Overall, markets remain cautious amid AI valuation concerns and economic uncertainties, while company-specific news drives notable stock movements.
Summary: Investor caution persists due to AI valuation worries and economic uncertainty, with key company earnings and central bank decisions shaping market dynamics.