A rebound in U.S. stock index futures lifted risk appetite,
On November 2, US stock index futures rose, with tech stocks and AI-related stocks stabilizing after a dismal October. The Nasdaq 100 lost more than $2.5 trillion in market value last month and at one point came close to a technical correction. Investors are watching the midterm elections and a dense earnings season, and are worried about tech companies’ AI spending and the rationality of debt financing.
Event Timeline
- [11-02 12:24] [US stock index futures rebound; market focuses on midterm elections and tech giant earnings] Jinshi Data, Nov 2: US stocks (Jinshi Data)
- [11-02 12:25] US stock index futures rebound; market focuses on midterm elections and tech giant earnings (Odaily Planet Daily)
Background and Impact
On November 2 (Monday), US stock index futures rose, with tech stocks and artificial intelligence-related stocks stabilizing after a dismal October. The report published by Jinshi Data at 12:24 that day and the report published by Odaily Planet Daily at 12:25 were basically consistent in content; the latter noted that the data came from MSX.COM. Both sources noted that investor attention is shifting to the US midterm elections and a new round of dense corporate earnings releases.
The October that just passed was not friendly to tech stocks. The sources show that the Nasdaq 100, which is heavily weighted toward tech stocks, lost more than $2.5 trillion in market value last month and at one point came close to entering a technical correction range. Market concerns are concentrated on two points: first, the continuously increasing AI spending of large tech companies, with investors still waiting for evidence that related investments will bring higher returns; second, the financing structure, as several companies have recently funded these investments by issuing bonds, further intensifying market concerns about debt-financed spending. The sources mentioned that as borrowing costs rise, the rationality of such spending may become increasingly difficult to justify.
The political calendar is another variable. Seth Meyer, Global Head of Client Portfolio Management at Janus