US stock futures fell on Thursday, led by the Tech (XLK) sector, as investors digested earnings from EV maker Tesla (TSLA) and social media giant (META) while oil prices surged to a five-month high.
Futures for Dow Jones Industrial Average (^YM=F) dropped 0.7%, while the S&P 500 (^ES=F) fell 1%. Contracts for the Nasdaq-100 (NQ=F) declined 1.7% as semicondcutor stocks fell, reversing gains from Wednesday’s session.
Meanwhile, investors weighed Meta’s quarterly results, which beat estimates. The company announced a 2-for-1 stock split, giving Class A shareholders one non-voting Class C share.
Tesla shares fell despite an earnings beat, as investors weighed lower 2026 capex against higher spending in 2027 and 2028 on Optimus, Cybercab, and Terafab.
A report that the US and Israel are preparing for renewed attacks on Iran after the US mid-term elections sent Brent crude (BZ=F) to $111 per barrel while West Texas Intermediate crude (CL=F) climbed above $98. A deadly attack at a Saudi Arabian airport and oil field has put upward pressure on energy prices.
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Oil prices rise to highest level since May on worries of Iran-US escalations after midterms
Oil prices rose on Thursday to their highest level since May amid growing worries over an escalation of the war in the Middle East after the Nov. 3 midterm elections.
Brent crude (BZ=F) topped $111 per barrel, while West Texas Intermediate crude (CL=F) hovered above $98 a barrel.
111.97 +3.15 (+2.89%)
As of 8:51:01 AM EDT. Market Open.
The US and Israel have reportedly drawn up plans for renewed attacks on Iran after the elections next month, according to the New York Times, citing unnamed US officials.
Meanwhile, Middle East tensions escalated after Saudi Arabia said it suffered attacks at the airport of Dammam and an Aramco oil field.
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Tesla reports Q3 earnings beat, positive free cash flow, and better-than-expected capex
Yahoo Finance’s Pras Subramanian reports:
Tesla (TSLA) reported better-than-expected third quarter earnings on Wednesday, with its free cash flow and capex spending coming in ahead of Wall Street estimates.
Tesla reported Q3 revenue of $28.05 billion vs. Bloomberg consensus of $28.13 billion. Tesla posted adjusted EPS of $0.48 vs. the $0.44 estimate, with adjusted EBITDA of $3.90 billion vs. $3.66 billion.
Tesla stock was volatile following the earnings release.
Read more here.
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IBM shares slide as revenue outlook holds steady despite earnings beat
IBM (IBM) shares were volatile in pre-market trading on Thursday after the company beat Wall Street’s top- and bottom-line estimates and raised its full-year free cash flow forecast, but maintained its 4%-5% revenue growth guidance for 2026.
Software revenue accelerated by 9%, but CFO Jim Kavanaugh said about a quarter of that growth came from closing “tens of slip deals” that were delayed from the second quarter.
This suggests third-quarter software growth was partly driven by delayed revenue rather than entirely by new demand.
