U.S. equity futures slid Thursday, weighed by declines in mega-cap names Meta Platforms and Tesla along with a jump in oil prices as geopolitical tensions rise.
Dow Jones Industrial Average futures lost 319 points, or 0.6%. S&P 500 futures fell 1%, and Nasdaq-100 futures dropped 1.6%.
Tesla shares dropped more than 3%, while Meta Platforms slipped about 1%. The declines came even after the former’s third-quarter results beat estimate, while the latter exceeded revenue expectations.
JPMorgan traders noted that Wednesday’s bullish “tone reversed overnight” because Meta shares rolled over in the premarket and chatter increased “over renewed Iran kinetic-risk post US mid-term election.”
Additionally, “underlying price actions and feedback from our trading desk also suggested the still fragile narrative around AI financing concerns and the lack of conviction/re-grossing from the recent tech reversal,” they said in a note to clients.
Oil prices, meanwhile, jumped more than 2% after The New York Times reported, citing sources, that the U.S. and Israel have plans for renewed strikes against Iran following next month’s midterm U.S. elections. Brent crude traded 2.7% higher at $111.77 per barrel. WTI advanced 2% to $99.25 per barrel.
Investors also turned to U.S. Treasurys in their search for a safe haven. The benchmark 10-year Treasury note yield dropped 7 basis points to 5.069%. The 2-year note yield also shed 6 basis points to trade at 4.761%.
The action follows a positive day on Wall Street, with the S&P 500 notching a three-day win streak.
Looking ahead to Thursday, there are a host of companies on deck to report results including Procter & Gamble, Lockheed Martin, Valero Energy and Honeywell.
Investors will also be paying attention to the economic calendar with weekly initial jobless claims set to release Thursday morning.
Europe’s Stoxx 600 index was down 1% in morning deals, while France’s CAC 40 index fell 1.34%.
South Korea’s Kospi fell more than 1%, while Japan’s Nikkei 225 declined 0.73%. Hong Kong’s Hang Seng Index was down more than 2%. Mainland China’s CSI 300 was down 0.37%.
Crude prices surge on renewed geopolitical fears
Oil prices surged Thursday after The New York Times reported, citing sources, that the U.S. and Israel have plans for renewed strikes against Iran following next month’s midterm U.S. elections.
Brent crude traded 2.7% higher at $111.77 per barrel. WTI advanced 2% to $99.25 per barrel.
— Fred Imbert
Hermes sinks 7% on weak demand from China
Birkin bag designer Hermès dropped to the bottom of the Stoxx600 index after reporting third-quarter earnings highlighting a drop in demand from Chinese consumers.
The French luxury brand saw total revenue for the third quarter rise 4.3% to 4.1 billion euros ($4.6 billion), recording growth in America, Japan and Europe. However, sales of its ready-to-wear and accessories division as well as watches fell during the quarter. It also flagged that growth in the Middle East and France was slightly down.
Hermès was last down nearly 7%.
“Back to China now, what we see is that it’s the volume divisions that are suffering, so fashion accessories, for example, and also watches and shoes,” Chief Financial Officer Eric du Halgouet said in the earnings call.
“It has to do with a drop in footfall that we have been able to offset with greater value, which is the strength of Hermès. With other divisions like jewelry, leather goods, and such, it’s really a matter of footfall more than anything else, and the volume-related mid-tier that suffers the most.”
Halgouet also emphasized that regarding recent protests in Paris, the brand has “reinforced security and safety” of its staff and stores, but it’s too early to gauge the impact on the business and on tourism.
— Sawdah Bhaimiya
Asia stocks tumble as tech sell-off deepens
Asian stocks tumbled on Thursday, led by a sell-off in technology shares.
The MSCI All Country Asia Pacific ex-Japan Index fell over 2% to its lowest level in nearly three months, putting it on course for a fourth consecutive weekly decline.
Japan’s Nikkei 225 reversed earlier gains to decline 2.6% to 62,907.84, while the Topix lost 1.1% to 3,997.5.
South Korea’s benchmark Kospi was down 3.52% to 5,533.77, while the small-cap Kosdaq was down 3.6% at 764.1.
China’s CSI 300 index shed 1.8% to 4,036.30, while Hong Kong’s Hang Seng Index declined 3% in its last hour of trade.
—Lee Ying Shan
Chip stocks tumble in premarket
French borrowing costs push to fresh 24-year high
European stocks open in the red
The pan-European Stoxx 600 was down 0.78% shortly after 8:10 a.m. in London (3:10 a.m. E.T.) as the continent’s main bourses and sectors started Thursday’s session mainly in the red.
Basic resources shed 2.22%, leading losses, as travel and leisure stocks slumped 1.94% in early dealmaking. Banks slipped 1.93% while technology names were down 1.79%.
Food and beverage stocks advanced more than 1%, while telecoms rose 0.39%, and oil and gas ticked 0.14% higher.
The French CAC 40 shed 0.82% in Paris, while Italy’s FTSE MIB dropped 0.96% in Milan. In Frankfurt, Germany’s DAX opened 0.73% lower, while in London, the U.K.’s FTSE 100 futures slipped 0.54%.
— Hugh Leask
Nestlé CEO says cash-strapped U.S. shoppers make for tough market
Nestlé CEO Philipp Navratil told CNBC Thursday that while third-quarter results were strong globally, the U.S. has been a tough market as shoppers face budget strains and seek value.
“Look, the U.S. numbers were also good in Q3… but consumers are still cautious, so it’s not an easy environment in the U.S. at all,” Navratil told CNBC’s Carolin Roth on “Squawk Box Europe.”
“Consumers look for value, they are stretched at the end of the month, and so we have to adapt the portfolio to the right price points,” he said.
Nestlé reported organic sales growth of 4% in the third quarter, with real internal growth (volume and product mix) of 2.8%.
Nestlé’s Americas sales improved in the third quarter, led by stronger U.S. and Latin American demand, despite continued weakness in some consumer segments.
“When we price, we do this with the aim to take consumers along…so we use different price points, different portfolio brands to really cater for each of the budgets out there,” Navratil added.
— Sawdah Bhaimiya
Defense group Thales boosts outlook amid major rearmament push
Defense electronics group Thales boosted its full-year outlook early Thursday, amid a major rearmament push among European defense primes.
The company, best known for military radars, secure battlefield communications, and the sophisticated avionics and sensors it supplies for Dassault Aviation’s Rafale fighter jet, said it now expects organic sales growth toward the upper end of its guided range of 6% to 7%, “and potentially beyond.”
In the third quarter, organic sales grew 8.7% year-on-year to 5.5 billion euros ($6.2 billion). Order intake rose 3% to 6.7 billion euros as customers ordered its air defense radars and battlefield communications systems, driven by “sustained demand in most markets.”
Thales also reported a sharp increase in orders from the Middle East regions, up 210% in the first 9 months of the year compared to the same period a year ago.
— Elsa Ohlen
Barclays third quarter profit rises 12% year-on-year
Barclays‘ third quarter pre-tax profit came in at £2.3 billion ($3.1 billion), up 12% year-on-year, and in line with LSEG-compiled forecasts of £2.3 billion. Group income was £7.4 billion, compared to analysts’ expected £7.61 billion.
Net interest income for the three-month period held steady at £3.91 billion, as the bank announced a new £500 million share buyback.
Barclays’ CET1 capital ratio — a measure of a bank’s solvency — was 14.2%, down from 14.3% at the end of the second quarter. Return on Tangible Equity, meanwhile, was 11.7%, versus 16.1% the previous quarter.
— Hugh Leask
European stock markets set to open in the red
Stoxx 50 futures were more than 1% lower ahead of the market open, with European stock markets set to start Thursday’s trading session in negative territory.
The French CAC 40 is set to open 0.91% lower, with Germany’s DAX is seen starting down 0.73%. Italy’s FTSE MIB was down about 1%.
In the U.K., FTSE 100 futures were off by 0.44%.
—Hugh Leask
European car market shows ‘resilience’ as EV sales rise
New car registrations in the European Union have risen 5.7% year to date, the European Automobile Manufacturers’ Association (ACEA) said Thursday.
The industry group said the market was showing “notable resilience” despite headwinds including higher energy prices and volatile geopolitics.
Buyer support measures and a greater range of models on offer have meanwhile supported electric vehicle sales, ACEA said.
Hybrid-electric cars were the most popular, with 36.3% of the market. Battery-electric cars accounted for 22.7% of new EU registrations, while plug-in hybrid electric sales accounted for 10.1%.
The share of petrol and diesel cars fell from 36.9% to 28.2% year-on-year.
— Jenni Reid
Indian rupee gains against greenback for eight straight sessions, its longest strengthening streak since March 2025
The Indian rupee has appreciated for eight straight sessions against the dollar, marking its longest strengthening streak since March 2025.
The rupee, which has been among the weakest Asian currencies for over a year, closed on Wednesday at a nearly four-month high of 94.46 rupees per dollar.
Devarsh Vakil, head of Prime Research at HDFC Securities, said the sustained momentum of the Indian currency has been “anchored by strategic central-bank intervention, healthy foreign inflows into the primary market and profit-taking in the US dollar.”
Earlier this month, India’s central bank announced measures that made it expensive to take speculative bets on the rupee and restricted rebooking of cancelled foreign exchange derivative contracts. It also opened a special window to meet the entire daily dollar requirements of three public sector oil marketing companies, ring-fencing this trade from spot markets.
China’s stock market sinks into bear territory as CSI 300 extends 10-week rout
China’s benchmark CSI 300 index on Thursday entered bear-market territory, falling 20% from its June peak, as a prolonged sell-off in its equities deepens.
The index, which tracks 300 of the largest stocks listed in Shanghai and Shenzhen, has declined for 10 consecutive weeks and is down 2.6% so far this week, underscoring sustained pressure on Chinese equities, data from LSEG showed.
“I think China is really struggling with reining in the problems that they’ve had in the past from the overbuild of capacity and other things,” said Jordan Cvetanovski, chairman and CIO at Pella Funds. China’s equity market continues to face structural challenges, particularly as the world’s second-largest economy grapples with the fallout from years of excess capacity and overinvestment, he added.
In September, the country posted it’s weakest growth in industrial profits this year amid intense competition that has eroded margins and even invited the government to step in.
— Lee Ying Shan
Bank of Korea holds rates after President Lee calls for boosting housing supply
South Korea’s central bank expectedly kept its policy rate steady at 3% on Thursday, after two straight hikes, with analysts pointing that it does not signal a change in policy stance as inflation stays elevated.
Economists polled by Reuters had forecast the Bank of Korea to hold rates and the decision comes after President Lee Jae Myung reportedly called for an “all out effort” to boost housing supply.
Inflation in Asia’s fourth-largest economy came in at 2.9% in September, staying at or above the BOK’s 2% target for 13 months.
Analysts from Dutch Bank ING said that the pause was unlikely to mark the end of the tightening cycle, as inflation remains above target and economic growth was relatively resilient.
Growth for South Korea has been largely supported by exports of semiconductors as demand for chips to power the AI boom continues.
Exports for September skyrocketed at a record 83.7% year on year, with semiconductors spiking over 262% compared to the same period last year.
—Lim Hui Jie
South Korea’s Kospi drops at open, Japan’s Nikkei 225 gains
Asia-Pacific markets opened mixed Thursday.
South Korea’s Kospi was down 0.67%, while the tech-focused Kosdaq fell 0.73%.
Japan’s Nikkei 225 rose 0.19% and the Topix advanced 0.38%.
Australia’s S&P/ASX 200 was flat.
— Lee Ying Shan
Asia-Pacific markets set to fall as AI jitters linger
Asia-Pacific markets were set for a mixed open on Thursday as concerns over the sustainability of the artificial intelligence boom continued to weigh on investor sentiment.
Futures for Japan’s Nikkei 225 in Chicago were at 64,555 while in Osaka they were last at 65,030, compared with the index’s previous close of 64,621.24.
Futures for Hong Kong’s Hang Seng index last traded at 23,602, lower than the index’s last close of 23,651.87.
Australia’s S&P/ASX 200 lost 0.56%.
— Lee Ying Shan
IBM stock volatile in after-hours trading following earnings report
Shares of International Business Machines swung wildly in extended trading after the company posted its third quarter results.
IBM was last down more than 3%, but the stock initially popped after the tech stalwart beat Wall Street’ expectations.
The company reported adjusted earnings of $2.95 per share for the third quarter, compared to analysts polled by LSEG’s expectations for $2.86 per share.
Revenue also beat estimates, and IBM now expects free cash flow for full-year 2026 to increase by more than $1 billion over the year prior.
—Paulina Likos
Southwest Airlines cuts its 2026 profit forecast
The Texas-based air carrier cut its 2026 profit outlook on Wednesday, citing higher fuel prices.
Southwest Airlines is the third carrier to trim its profit guidance this month, after Delta Airlines and United.
Southwest now anticipates earning between $2.60 and $2.85 per share on an adjusted basis this year, down from its July call for $3.25 to $4.25 per share.
Shares of Southwest were last down 0.2% in extended trading.
—Paulina Likos
Stocks making the biggest moves after hours: Meta Platforms, Tesla, Lam Research
Several stocks made dramatic moves in extended trading following their latest earnings releases.
Tesla — Elon Musk’s auto manufacturer shed earlier gains and last traded down 2%. Tesla posted beats on the top and bottom lines in the third quarter. The company earned 48 cents per share on an adjusted basis and posted revenue of $28.05 billion. Analysts polled by LSEG were looking for 43 cents a share and $27.88 billion.
Meta Platforms — The social media giant gained 3% in extended trading after revenue came in ahead of analysts’ estimates. Third-quarter revenue of $64.60 billion topped the LSEG consensus call for $63.37 billion. The midpoint of its fourth-quarter sales guidance was also above the Street’s estimates.
Lam Research — The semiconductor manufacturing equipment company dropped more than 5%. Lam sees second-quarter adjusted earnings of $2.33 per share, plus or minus 15 cents, on revenue of $8.60 billion, plus or minus $400 million. That compares to analysts’ expectation for $2.31 per share and revenue of $8.53 billion.
Read more about Wednesday evening’s after-hours movers here.
—Darla Mercado
U.S. stock futures open lower Wednesday night
Stock futures opened lower shortly after 6 p.m. in New York.
Futures tied to the S&P 500 were down 0.2%, while Nasdaq-100 futures fell 0.3%. Dow futures ticked down 0.1%, or about 72 points.
—Darla Mercado
