Dow Jones Today: Stock Futures Point Lower as AI Bubble Concerns Continue; AMD Shares Drop Despite Strong Results

Stock futures pointed mostly lower Wednesday, the record-breaking 36th day of the U.S. government shutdown, after major indexes dropped yesterday on concerns about an AI bubble. 

Futures associated with the tech-heavy Nasdaq and benchmark S&P 500 were down 0.3% and 0.2%, respectively, while those affiliated with the blue-chip Dow Jones Industrial Average were little changed.

Given the freeze on government economic data releases because of the shutdown, investors will be paying extra attention to this morning’s ADP employment report, which is expected to show that the private sector added 22,000 jobs in October after a decrease of 32,000 jobs in September. The shutdown is expected to delay Friday’s release of the October U.S. jobs report.

Yesterday, the indexes all finished in the red, with the Nasdaq dropping 2% as Palantir Technologies (PLTR) shares dropped 8% even though the AI software company posted record quarterly results and raised its full-year revenue outlook. Palantir shares, which entered Wednesday up more than 150% this year, fell a further 1.5% before the bell.

Similarly, shares of Advanced Micro Devices (AMD) were pulling back 3% even though the firm late Tuesday reported record quarterly results above analysts’ projections as booming demand for AI helped boost sales of its data center chips.

In post-earnings moves, Pinterest (PINS) stock dropped 18%, Super Micro Computer (SMCI) sank 7%, McDonald’s (MCD) advanced 0.6%, Humana (HUM) fell 4%, and U.S.-listed shares of Novo Nordisk (NVO) were little changed.

Bitcoin, which yesterday fell below $100,000 for the first time since June, was trading around $102,500, up from the day’s low of below $99,000. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, was little changed at 100.18.

The 10-year Treasury yield, which influences interest rates on all kinds of consumer loans, ticked lower to 4.08% from 4.09% at yesterday’s close. Gold futures ticked 0.4% higher to $3,975 an ounce, while West Texas Intermediate futures, the U.S. crude oil benchmark, fell 0.3% to $60.35 a barrel.