U.S. stocks are pointing to a lower open following disappointing earnings from Amazon (AMZN) that reinforced worries about the artificial intelligence (AI) trade. All three of the major U.S. indices closed lower on Oct. 29 after Google parent company Alphabet (GOOGL) posted poor financial results and negative free cash flow for the year’s third quarter.
The Nasdaq Composite index was the big loser on the day, falling 1.38% to end the trading session at 26,184.72. The benchmark S&P 500 index slipped 0.3% to close at 7,720.39. And the blue-chip Dow Jones Industrial Average lost 132.54 points, or 0.25%, to finish at 52,342.56. GOOGL stock dropped 13%, its biggest one-day decline ever.
In the futures market, the S&P 500 index is falling 0.63%, the Dow is sliding 0.03% lower, and the Nasdaq Composite index is down 435 points or 1.48%.
Amazon’s key performance indicators. Source: TipRanks
Amazon’s financial results weren’t much better than Alphabet’s and appear to reinforce concerns about unsustainable spending on the AI infrastructure buildout. The technology giant reported financial results that missed Wall Street’s targets across the board. Earnings per share (EPS) of $1.89 fell short...