Asian stocks fall as AI spending concerns weigh on tech
Apple, AMD and Palantir earnings are due after Intel's nearly 29% slide on Friday. US stock futures rose despite the decline in Asian shares.
US stock futures rise ahead of Apple earnings as oil falls
Asian shares were mixed, while Brent crude fell 2.0% as talks aimed at ending the US-Israeli war on Iran continued.
US stock futures advanced during Asian trading on November 2 as investors awaited Apple's earnings, hoping the results would ease concerns about spending on artificial intelligence. S&P 500 futures gained 0.4%, while Nasdaq futures rose 0.8%.
Analysts expect Apple to post quarterly earnings of $2 per share, compared with $1.85 a year earlier, on revenue of $113 billion. Investors were also awaiting possible guidance on early iPhone 18 sales after pre-orders began in mid-October.
The gains in US futures followed an almost 7% October decline for the Nasdaq. In Asia, Japan's Nikkei slipped 0.1%, South Korean shares advanced 0.8%, and MSCI's broad Asia-Pacific index excluding Japan fell 0.2%. EUROSTOXX 50 and DAX futures each added 0.1%; FTSE futures were unchanged.
Oil retreated as negotiations aimed at ending the US-Israeli war on Iran continued, although tankers remained under attack in the Gulf. Brent futures fell 2.0% to $111.15 a barrel after gaining 13.6% in October. US crude futures declined 2.3% to $101.73 a barrel.
Interest-rate futures indicated a 72% probability that the Federal Reserve would raise rates by a quarter-point in December. Total expected tightening stood at 55 basis points, down from more than 70 basis points a month earlier. The 10-year Treasury yield edged up to 4.941%, while the two-year yield was 4.612%.
Gold rose 0.9% to $3,911 an ounce after losing 6.8% in October. The euro edged higher to $1.1169, while the dollar was little changed at 157.75 yen.