Nasdaq-100 Futures Drop 1.7% on Amazon (AMZN) and Intel (INTC) Earnings

Published on 10/29/2026 · Source: cnbc.com

AI Summary

Summarized by AI from the source below

Nasdaq-100 futures dropped 1.7% following earnings reports from Amazon (AMZN) and Intel (INTC) that disappointed investors. Amazon shares fell 6% in after-hours trading after reporting a third-quarter free cash flow loss of $42.4 billion and revenue that missed analyst expectations. The company maintained its 2026 capital expenditure forecast of $220 billion.

Intel shares declined 21% after issuing a weak current-quarter outlook amid a 5% year-over-year revenue decrease to $8.1 billion in its client computing and AI segments. Other tech shares like Sandisk fell 3% despite beating fiscal first-quarter estimates and announcing an eight-for-one stock split. Alphabet saw a 12% loss in regular trading after posting a third-quarter revenue miss and negative free cash flow of $9.07 billion, which contributed to a 1.4% drop in the Nasdaq Composite.

The declines highlight investor concern over tech spending related to AI infrastructure development, with cloud-computing firms facing scrutiny over debt levels and capital expenditure growth. The Nasdaq Composite is set for a 2.5% monthly decline, contrasting with gains expected for the S&P 500 and Dow. This matters to investors as earnings shortfalls and cautious spending forecasts from major tech firms could pressure tech sector valuations and influence market sentiment heading into November.

Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.

Our take

Opinion from the Newsstocks AI desk, not investment advice

We think the earnings reports from key tech players Amazon and Intel indicate growing caution among investors about the tech sector's near-term growth. The declines in multiple tech stocks reflect concerns over spending on AI infrastructure and slowing demand. This pattern could continue if subsequent earnings reports confirm a cautious outlook.

Key numbers

Nasdaq-100 futures drop: 1.7%
Amazon after-hours share loss: 6%
Amazon free cash flow: negative $42.4 billion
Amazon 2026 capital expenditure forecast: $220 billion

What could hurt

Investor concerns about slowing PC demand and weak earnings forecasts from Intel.
Significant free cash flow deficits posted by Amazon and Alphabet.
Investor scrutiny of tech companies' capital spending and debt levels.

What to watch next

Investors will monitor upcoming tech earnings and capital expenditure updates as AI infrastructure investments evolve.

The background

Earnings reports show how well companies performed financially in a recent period. Stock futures indicate expectations for market movement before regular trading hours.

Questions readers ask

Why did Amazon (AMZN) shares fall after its earnings report?

Amazon shares fell 6% in after-hours trading due to earnings and revenue that missed expectations and a negative free cash flow of $42.4 billion.

What caused Intel's (INTC) shares to decline 21%?

Intel's shares declined 21% after it issued a weak outlook for the current quarter and reported a 5% revenue decrease in its client computing and AI segment.

How did Alphabet's earnings affect the market?

Alphabet's shares lost 12% after missing third-quarter earnings and revenue estimates, posting negative free cash flow, which contributed to a 1.4% Nasdaq Composite decline.

About Amazon.com Inc. (AMZN)

Amazon is the largest U.S. e-commerce retailer and, through Amazon Web Services (AWS), the leading cloud-infrastructure provider, with growing advertising and logistics arms.

The Consumer Discretionary sector covers retailers, automakers and leisure companies whose sales rise and fall with consumer confidence.