US stock futures declined sharply on Thursday, with the technology sector leading losses as investors processed earnings results from Tesla (NASDAQ: TSLA) and Meta (NASDAQ: META).
Futures for the Dow Jones Industrial Average dropped 0.7%, reflecting broad market unease as geopolitical tensions and mixed corporate results weighed on sentiment.
The S&P 500 futures fell 1%, extending a pullback that reversed much of the momentum built during Wednesday’s trading session.
Contracts for the Nasdaq-100 declined 1.7%, with semiconductor stocks among the hardest hit as the artificial intelligence trade came under renewed pressure.
Meta (NASDAQ: META) reported quarterly results that beat analyst estimates, offering one bright spot in an otherwise cautious pre-market environment for investors.
Meta also announced a 2-for-1 stock split, granting Class A shareholders one non-voting Class C share as part of its capital structure adjustment.
Tesla (NASDAQ: TSLA) shares fell despite posting an earnings beat, as investors weighed lower 2026 capital expenditure against higher planned spending in 2027 and 2028 on Optimus, Cybercab, and Terafab.
Oil prices surged to a five-month high after reports emerged that the US and Israel are preparing for renewed attacks on Iran following the US mid-term elections.
Brent crude climbed to $111 per barrel while West Texas Intermediate crude rose above $98, marking a significant spike driven by escalating Middle East tensions.
A deadly attack at a Saudi Arabian airport and oil field added further upward pressure on energy prices, compounding concerns already elevated by the broader geopolitical situation.
The combination of rising oil prices, geopolitical risk, and uncertainty around corporate earnings guidance created a difficult backdrop for equity markets heading into Thursday’s open.
Chip stocks, which had been key drivers of recent market gains, faced particular selling pressure as investors reconsidered valuations tied to the AI investment cycle.
