Danske Research Team describes Wednesday as a constructive session for global equities, with the S&P 500 and Nasdaq posting gains. However, weaker overnight earnings sentiment, including Meta’s higher spending plans and Tesla’s lower capex guidance, has weighed on futures, with Nasdaq and S&P 500 contracts trading lower alongside a softer Kospi.
"Wednesday was ultimately a constructive session for equities rising 0.7%, with the S&P 500 up 0.6% and Nasdaq gaining 1.1%."
"The overnight earnings picture, however, has been less convincing to markets."
"Meta raised its spending outlook and announced new AI initiatives, while Tesla moved in the opposite direction, lowering its 2026 capex target to USD20bn from above USD25bn."
"The two stocks also moved in opposite directions in post-market trading."
"So, while Meta shares gained after hours, the broader signal from big tech was not strong enough to keep the AI momentum going."
"Nasdaq futures are down 1.2% this morning and S&P 500 futures are down 0.6%, while the Kospi is also trading lower."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)