On Tuesday, US stock index futures were mixed as crude oil prices edged higher and markets anticipated midterm election results, while Apple joined a growing list of Big Tech firms whose earnings overwhelmed Wall Street.
The reports showed that Apple shares tumbled 4.5% before the opening bell following the firm’s alert that escalating memory chip costs would persist, compressing its holiday-quarter gross margin.
However, several tech companies have also accessed the debt market to finance big AI investments recently, heightening fears that debt-funded spending will become less sustainable as borrowing costs rise.
According to Morgan Stanley analysts, the elections should help remove an impending market overhang , with another risk factor being the US renewing attacks on Iran after the midterms.
Notably, drugmaker Pfizer, agribusiness Archer-Daniels-Midland and oil refiner Marathon Petroleum were set to report ahead of the opening bell. In addition, semiconductor test equipment maker Aehr Test Systems gained 14.6% and network equipment provider Harmonic added 16.1% spurred by increased full-year-top-line projections.
